AFD Boosts Africa Digital Financial Inclusion with €3 Million to ADFI

This contribution marks a total of over €5 million from AFD, underscoring its strong commitment to accelerating financial inclusion across the African continent.

The Agence française de développement (AFD) has announced a significant commitment of an additional €3 million to the Africa Digital Financial Inclusion Facility (ADFI), which is managed by the African Development Bank (AfDB). This contribution marks a total of over €5 million from AFD, underscoring its strong commitment to accelerating financial inclusion across the African continent.

AFD's continued support of the ADFI partnership aims to catalyze the expansion of digital financial services across Africa, addressing the needs of underserved communities by promoting scalable and replicable initiatives that enhance access to credit and other financial services. These services are crucial for boosting investment, entrepreneurship, and economic resilience in the region, particularly in areas most affected by climate change.

AFDI was co-founded in 2019 by the African Development Bank, the Agence française de développement, the Bill and Melinda Gates Foundation, and the Ministry of Finance of the Government of Luxembourg. Since then, other partners such as France’s Ministry for the Economy, Finance and Industrial and Digital Sovereignty, the Women's Enterprise Finance Initiative (We-Fi), and India’s Ministry of Finance have joined the initiative, further amplifying the impact of digital financial inclusion across the continent.

The increased funding from AFD is part of a broader strategic effort to develop digital financial solutions that cater to the unique needs of various African communities, with a special focus on empowering women, youth, farmers, and small businesses. According to recent reports, nearly half of Africa’s adult population remains excluded from digital financial services, particularly in rural areas, underscoring the urgent need for greater financial inclusion.

The initiative seeks to bridge the financial gender gap, as women and young people remain disproportionately affected by the lack of access to financial services in many African nations. Financial exclusion in Africa also impedes the growth of small businesses, further limiting economic opportunities for entrepreneurs and farmers who rely on credit to grow their ventures.

Speaking about AFD’s support for the ADFI initiative, Audrey Brule-Françoise, head of AFD’s Financial Systems Division, emphasized the importance of digital financial services in reaching excluded populations in Africa. She said, "Through our continued collaboration within ADFI, we aim to promote access to digital financial services that are tailored to diverse needs and delivered in a responsible manner. This new contribution will help scale up impactful and inclusive solutions."

The African Development Bank’s Mohamadou Ba, head of the Financial Intermediation and Inclusion Division, reiterated the significance of digital financial services in improving quality of life across Africa. "Digital financial solutions are key to improving the quality of life of people in Africa and reducing the gender access to finance gap," Ba stated. "We welcome the Agence française de développement’s renewed support of the catalytic role ADFI has been playing in accelerating greater access and usage of digital financial solutions and financial inclusion across the continent. We look forward to working together to scale our efforts to enhance the impact on greater economic empowerment, resilience, and growth across Africa."

The ADFI initiative works across three broad strategic pillars: infrastructure, policies and regulations, and product innovation. These pillars aim to expand the reach of digital financial solutions while also fostering the development of the necessary digital infrastructure, regulatory environment, and innovative products that will help empower underserved communities. At the same time, ADFI is committed to building capacity and reducing gender gaps in financial access, ensuring that the benefits of digital financial services are equitably distributed across all demographics in Africa.

This effort is in line with the African Development Bank’s Ten-Year Strategy, which focuses on inclusive growth and improving the quality of life for the people of Africa. As digital financial solutions continue to grow in importance, the ADFI’s work will remain central to the Bank’s ongoing financial sector development efforts, particularly in addressing the needs of underserved communities that have traditionally lacked access to banking services and credit.

Digital finance is increasingly recognized as a key driver of economic development, particularly in emerging markets like Africa. By leveraging mobile technology, digital wallets, and other online financial services, ADFI is playing a crucial role in promoting financial inclusion for Africa’s most vulnerable populations. As the continent continues to grow and innovate, digital financial solutions will serve as a foundation for economic empowerment, resilience, and long-term growth.

As the funding from AFD grows, so too will the potential to transform Africa’s financial landscape, unlocking new opportunities for investment and entrepreneurship. With the ADFI at the forefront, this collaboration promises to accelerate the pace of financial inclusion across Africa, providing millions of people with the tools they need to thrive in a rapidly changing global economy.