MICROCAPITAL BRIEF: Luxembourg, AFD, BMZ Funding AFI Multi-Donor Financial Inclusion Policy Implementation Facility for Africa

The Ministry of Finance of Luxembourg and the 100-member Alliance for Financial Inclusion (AFI) recently announced the launch of a Multi-Donor Financial Inclusion Policy Implementation Facility (MD-PIF) in partnership with the French government’s Agence Française de Développement (AFD) and the German government’s Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ). Luxembourg is granting EUR 1.2 million (USD 1.3 million) to the facility, which will allow AFI to build national and regional financial inclusion policies that focus on gender equality, innovation in digital finance, financial education, and funding small and medium-sized enterprises. The funding from Luxembourg is to be disbursed in three equal yearly tranches. The extent of the participation of AFD and BMZ has not been announced.

AFI Executive Director Dr Alfred Hannig said, “Thanks to MD-PIF and partners, like the Ministry of Finance of Luxembourg, our members in sub-Saharan Africa and the Arab region are able to continue receiving tailor-made, in-country policy implementation assistance and persist in drawing from AFI’s knowledge and experience.”

Founded in 2008, AFI is a Malaysia-based network owned by its central banking and financial regulatory members, which represent 89 developing and emerging economies. Its goal is to increase access to financial services for poor people by improving government policies via knowledge sharing and the provision of grants to its members.

AFD is a development institution created in 1941 that provides loans, grants and technical assistance to projects concerning climate, biodiversity, peace, education, urban development, health and governance in France’s overseas departments and territories as well as 115 other countries. In 2018, AFD launched 846 development projects and placed EUR 11.4 billion (USD 12.6 billion) in funding commitments.

Founded in 1961, BMZ focuses on economic development in Germany and approximately 60 other countries. As of 2018, it reported total assets of EUR 208 billion (USD 230 billion).

By Anna Gravois, Research Associate

Sources and Additional Resources

AFI press release
https://www.afi-global.org/news/2019/09/luxembourg-signing-will-help-bolster-financial-inclusion-across-african-continent

AFI homepage
https://www.afi-global.org

Luxembourg’s Ministry of Finance homepage
https://mfin.gouvernement.lu

AFD homepage
https://www.afd.fr

BMZ homepage
https://www.bmz.de

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