The Indian government has pledged a remarkable US$2 million investment towards the Africa Digital Financial Inclusion Facility (ADFI), expertly housed and skillfully managed by the prestigious African Development Bank.
This significant contribution aims to shatter barriers hindering the expansion and adoption of digital financial solutions across the African continent, heralding a new era of accelerated financial inclusion for millions of underserved individuals.
According to Manisha Sinha, who serves as the Additional Secretary in the Department of Economic Affairs and also a Principal ADFI Governing Council Member for India, the country’s Digital Public Infrastructure (DPI) offers a remarkable, cost-effective, inclusive, and just model.
It also holds significant potential for fostering learning opportunities within the global digital finance ecosystem.
“India’s pioneering role in digital financial services, extending financial inclusion to remote rural areas and creating infrastructure for digitisation of financial services, opens a significant opportunity for India to work within the ADFI partnership to share learning and expertise on digital public infrastructure to further digital financial inclusion across the continent,” Sinha asserts.
Through its initiatives and partnerships, ADFI works closely with various stakeholders, including governments, financial institutions, fintech companies, and development organizations.
This collaborative approach ensures that a comprehensive and sustainable framework is established to address the unique challenges faced by different regions and demographics within Africa.
Overall, ADFI’s dedication to supporting the African Development Bank’s Ten-Year Strategy and the High 5 priority is driven by its unwavering belief in the potential of digital financial inclusion to uplift communities, promote economic resilience, and foster lasting positive change across the African continent.
ADFI’s efforts revolve around scaling innovative digital financial solutions under three main strategic pillars: infrastructure, policies and regulations, and product innovation. These initiatives also prioritize capacity building and gender inclusion across all interventions.
Solomon Quaynor, the African Development Bank’s vice president for the Private Sector, Infrastructure, and Industrialization, expresses appreciation for the Government of India’s backing of ADFI’s catalytic role in advancing access and usage of digital financial solutions and financial inclusion throughout the continent.
Despite the evident positive impact of digitization on sustainable development in Africa, data reveals that nearly half of the continent’s adult population, particularly women, youth, farmers, small businesses, and rural communities, still lack the benefits of digital financial initiatives.
With this bold step, India reaffirms its commitment to fostering financial empowerment and socio-economic progress in Africa, forging a stronger partnership to drive innovation and transform lives on a grand scale.
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