1. Introducing FSD Africa… @fsdafrica

2. Presentation Outline Who are we? What do we do? Why do we do it? Who do we do it with?

3. But first, some definitions… What is Financial Inclusion? “…expansion of a range of financial services (including saving and deposit services, payment and transfer services, and credit and insurance) to businesses and all sections of society” What is Financial Sector Development? “…emergence of a robust, efficient and inclusive financial market system”

4. Who are we…? FSD Africa created by DFID in late 2012 Regional financial inclusion and financial sector development programme Build inclusive, efficient, robust financial markets Based in Nairobi, but pan sub-Saharan in scope (including non-DFID office countries) GBP 35 million DFID (PSD, ARD, DFID Nigeria and Uganda) funding until 2018 Current full-time staff of seven, led by Mark Napier (mark@fsdafrica.org) Now incorporated as a CLG in Kenya, but being future proofed as a potential returnable capital vehicle for DFID Member of a wider group of DFID financial inclusion and financial sector development programmes in Africa – the FSD Network…

5. Today, the FSD Network: Comprises 9 FSDs across SSA in South(ern) Africa (2002), Kenya (2004/5), Tanzania (2004/5), Nigeria (2007), Rwanda (2011), FSD Africa (2012), Zambia (2013), Uganda (2014), Mozambique (2014). + Leading proponent of ‘making markets work for the poor’ approach + Specialises in a number of themes from agriculture finance and savings groups to payments, SME finance and capital market development. + Represents a collective investment of $450+ million by DFID; Bill & Melinda Gates Foundation; SIDA; DANIDA; Foreign Affairs, Trade and Development Canada; RNE (Netherlands) and World Bank. + Spends $55+ million per year, predominantly through grant instruments + Employs over 100 full time members of staff and a wide range of consultants Who are we…?

7. What do we do…? Three main areas of work: Finance for all > access to financial services > reduction in vulnerability + increased empowerment Finance for growth > provision of capital to real economy > inclusive economic growth FSD network support > collaboration, best practice sharing, harmonised approach to corporate governance and M&E > value for money for DFID

8. FSDA Strategic Plan (2013-2018) Pillar 2 Knowledge and evidence - £6m Pillar 1 Skills development and training - £13m Pillar 3 Thematic programmes - £4m Pillar 4 Regional platform - £4m Change management FSD network support Building services markets Regional Centres of Excellence Retail payments, interoperability + G2P Agriculture financeInformation products Credit market development Impact evaluation Regional research Stakeholder co-ordination Growth activities +2.3m savings accounts; +750k credit accounts, +5000 trained financial service professionals, +investee operating efficiencies, +capacity of local training providers, +women financial inclusion, +2 post-conflict & +1 francophone countries

9. What do we do…? Finance for all > access to financial services > reduction in vulnerability + increased empowerment Live projects / initiatives: -Women’s World Banking – USD 7.1m; NMB (Tanzania), Diamond Bank (Nigeria), NBS (Malawi); 1m access to finance; saving and credit products -Fidelity Bank – USD 175k, Ghana; 5m access to finance within 5 years; operational support to pilot agent banking roll-out -GIZ Uganda – USD 317k; Uganda with regional potential; MM credit to 18k coffee farmers by 2 financial institutions -Consult Hyperion - USD 185k; Somalia; 3.4m; enhance last mile customer DD and oversight at last mile of UK – Somalia remittance corridor

10. What do we do…? Finance for growth > provision of capital to real economy > inclusive economic growth Live projects / initiatives: -London Stock Exchange – USD 180k; Tanzania with regional potential; train 100 capital capital market leaders and trainers -Frontier Clearing Fund – USD 8.2m; global with African TA component; promotes long-term inter-bank lending by guaranteeing local collateral -National Small Business Survey – USD 148,500; Uganda with regional potential; SME finance

11. What do we do…? FSD network support > collaboration, best practice sharing, harmonised approach to corporate governance and M&E > value for money for DFID Live projects / initiatives: -FSD Academy -FSD Impact Evaluation Process -FSD in a Box -FSD Project Collaboration -FSD Executive Coaching -FSD Thematic Workshops -FSD Working Groups -FSDA Resourcing

12.  Championing best practice, strategic promotion + spreading the word within and beyond the network…  Building strategic and operational capacity across the network…  Strategic advocacy, agenda setting within and beyond the network… i) Rowing ii) Steering iii) Cheering iv) Coaching  Direct delivery and implementation in partnership with other members of the network… What do we do…?

14. The market facilitation approach...

15. Why do we do it…? Finance for all > access to financial services > poverty reduction o 24% of SSA adults have access to a bank account at a formal FI o Over 200 million SSA adults remain financially excluded Finance for growth > provision of capital to real economy > inclusive economic growth o Lack of long-term capital to satisfy long-term investment needs of ‘frontier’ sectors o Annual infrastructure investment gap USD 31 billion FSD network support > collaboration, best practice sharing, harmonised approach to corporate governance and M&E > value for money for DFID o Lack of best practice sharing (operational and strategic), lack of harmonised approach to M&E, lack of HR function

16. Why do we do it…? FINANCE FOR ALL FINANCE FOR GROWTH FINANCE FOR STABILITY The investment finance spectrum...

17. Why do we do it…? HiFi & SIMBA (FSDA + FSD Network)

18. DFID Investment and Finance Team Programmes... HiFi & SIMBA (FSDA + FSD Network)Global SME Finance Facility CDC CDC Impact and DIBs Capital Markets Disaster Risk Insurance FIRST Why do we do it…?

19. CountriesDetail Consult Hyperion and Katuni Consulting - USD 183k for primary research in Somalia and the design of technical solutions to enhance customer due diligence and payment monitoring along the UK – Somalia remittance corridor to safeguard access to finance for up to 3.4m Somalis. UNCDF – USD 260k for work with BRAC and Lonestar on agent banking network planning and delivery (411k accounts), as well as research into customer centric design. Women’s World Banking (WWB) – USD 7.1m to WWB for work with NMB (Tanzania), Diamond Bank (Nigeria) and NBS (Malawi) to develop saving and credit products for 1m low income men and women by 2018. Centre for Affordable Housing Finance in Africa (CAHF) – USD 160k for the design and implementation of a housing finance framework through a related NGO in Angola Why do we do it…?

20. Who do we do it with…? Private SectorPublic SectorDonors and DFIsThought-leadersPractitioners MFIs Banks Stock Exchanges Brokers Telecom companies Insurance companies Private equity firms Central Banks Ministries of Finance International and national regulators National Pension Funds

21. Thank you