Financing the Frontier: Inclusive Financial Sector Development in Fragility-Affected States in Africa

Categories : Customer and Users of Digital Payments, Financial inclusion


Author: Mercy Corps

Poverty rates in Africa’s states and regions considered ‘fragility-affected’ (DFID, 2016) are, on average, 20% higher than countries with comparable levels of economic development. The gap is widest for countries affected by repeated cycles of violence. Finance can play a crucial role in poverty and conflict cycles, as lack of equitable access to financial services can lead to underdevelopment and stagnation, exacerbating social and economic unrest. The research by FSDA and Mercy Corps finds that donor and development actor investments in financial inclusion is one of the best strategies for future investment in fragile-affected countries and regions. This research has global implications for regions facing similar challenges.