MICROCAPITAL BRIEF: World Bank’s IDA Commits $45m to Financial Inclusion of Women, Their MSMEs in Madagascar via Fintech, Credit Guarantees, Business Development Services

The International Development Association, a member of the World Bank, recently approved a wide-ranging program to boost financial inclusion in Madagascar, particularly among women. The program includes: (1) establishing e-money accounts for payments to and from the government; (2) credit guarantees to financial institutions serving micro-, small and medium-sized enterprises (MSMEs); (3) helping financial institutions adopt new financial technology services; (4) offering business development services to MSMEs; and (5) supporting microfinance institutions in establishing new branches in rural areas.

Coralie Gevers, the World Bank’s Country Manager for Madagascar, commented, “With the expansion of telecom services across Madagascar, the country has a chance to expand financial services through the greater use of mobile money to people who had been under-served until then, be it the teacher who had to be absent from school to go and collect her salary or the farmer needing credit to buy seeds and fertilizer.”

The International Development Association provides grants and low-interest loans totaling approximately USD 18 billion per year to the 75 poorest countries in the world.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) the International Finance Corporation; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2017, the World Bank Group disbursed funds totaling USD 44 billion.

Sources and additional resources

World Bank press release
http://www.worldbank.org/en/news/press-release/2018/02/28/madagascar-45-million-to-promote-financial-inclusion-of-individuals-and-small-enterprises

World Bank
http://www.worldbank.org/

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