Financial Inclusion

Financial Inclusion

We are working to bridge the gap by delivering interventions that provide financial services to excluded people especially in the rural Africa

We provide financial services to excluded people

Financial Inclusion

More than two billion adults the world over are financially excluded. This means that they lack access to credit, savings, insurance and payments options including mobile money. Financially excluded individuals and households are missing out on welfare and developmental impacts derived from access to appropriate financial services. Access to micro credit enables small business owners to finance business expansion leading to larger and more profitable businesses. Access to savings options enables households to balance their income and expenditure, build borrowing capacity, create a nest egg for the proverbial rainy day and enable future household investment. Access to insurance creates planned capacity to withstand risks while access to suitable payment options results to greater efficiency of transactions. Research demonstrates that financial inclusion results to higher levels of economic growth and employment and allows for more effective execution of social and development priorities.

Through our financial inclusion pillar, we are working to bridge the gap by delivering interventions that provide financial services to excluded people especially in the rural Africa.

 

Our Programmes
 

1. The MasterCard Fund for Rural Prosperity

Sub-Saharan Africa is growing rapidly, but the pattern of growth has increased inequality, and growth has not led to substantial poverty reduction. Many rural areas in Africa remain extremely poor, with the smallholder farmers that make up 65% of Africa’s workforce largely excluded from the economic growth story. Financial exclusion reinforces this state of extreme poverty.

We are managing the MasterCard Foundation’s Fund for Rural Prosperity that is bridging the financial inclusion gap by supporting financial innovation. The US$50 Million challenge will enable 1,000,000 poor people in rural Africa to have access to appropriate savings, credit and insurance products and services. For the programme, we are providing the full range of fund management services including design, competition management, grantee contracting, financial and Programme management oversight, monitoring and evaluation. Specifically, we run an Innovation competition and a Scaling competition.

The Innovation Competition seeks applications from organizations aiming to design, pilot, test, and launch new financial products and services that can effectively meet the financing needs of people living in poverty in rural and agricultural areas. The Scaling Competition aims to take proven concepts, products and business models and to adapt and launch them at a larger scale across new geographies and markets.

 

2. Financial Sector Deepening (FSD) Kenya Trust

We have been supporting financial sector deepening in East Africa for more than a decade. In Kenya, we supported the Financial Sector Deepening (FSD) Kenya Trust from 2004. Our support has included managing the Trust’s assets in accordance with the terms of the Trust Deed and providing a Finance Administrator to undertake the day-to-day financial management and administration of the Trust. KPMG is currently an active trustee of FSD, Kenya.

 

3. Financial Services Inclusion program in Uganda (FSIP)

In Uganda, we designed and implemented the Financial Services Inclusion program in Uganda (FSIP) before its establishment as a special purpose vehicle now known as the Financial Sector Deepening Uganda (FSDU), which is now implementing the inclusion programme. We also provided services as fund manager supporting interventions that promote increased access to and use of financial services by poor people and small, medium and micro enterprises. This programme ran until 2015.

 

4. Access to Finance, Rwanda (AFR)

In Rwanda, we are supporting Access to Finance, Rwanda (AFR) a multi-donor funded project worth £ 10m for 5 years aimed improving the livelihoods of 500,000 poor people in Rwanda by improving their access to financial services. KPMG IDAS built on its experience with the Financial Sector Deepening Trust in Kenya, to assist in the setup of AFR as a company limited by guarantee and its operating systems and carry out start up activities for AFR. AFR aims to increase access to financial services for poor rural and urban people (especially women) and Micro and Medium Enterprises (MSMEs).

We continue to provide fiduciary oversight with an emphasis on financial management, Human resource management and procurement administration as well as administrative /logistical support to ensure that AFR objectives are met. This project runs from 2011-2016.

5. Financial Frontiers Challenge Fund

We are currently implementing the Financial Frontiers Challenge Fund an initiative of Financial Sector Deepening, Africa that focuses on sourcing and selecting innovative change management initiatives across sub Saharan Africa. The fund whose design we have just completed will target financial services providers (FSPs) in sub Saharan Africa working with consultancy /advisory firms that have good geographical reach and strong relationships with FSPs across Africa.

Our role is to work with FSDA’s Change Management & Building Services Markets team conceptualize the FSDA’s aims and objectives, and to devise efficient systems for administration and on-going management of the fund. As the FSDA manager, KPMG IDAS will work with FSDA to manage the projects from all technical, financial and risk perspectives. This project is expected to run till 2019.


 

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