Unlocking the power of financial inclusion in sub-Saharan Africa

There has never been a more pivotal point in history for brands and businesses to get behind the call for greater financial inclusion. 

Everyone deserves an equal chance at economic prosperity – particularly in sub-Saharan Africa, where growth has been stymied amid inequality. Visa has implemented several initiatives to help to spark positive progress. 

Cultivating the fruits of financial inclusion

Strategic partnerships are at the core of translating individual actions in order to collectively advance the Sustainable Development Goals (SDGs). SDG 17 is the centrepiece of the collaborative work that elevates entrepreneurs’ investments for the benefit of their immediate community and the continent as a whole. 

An example of this is the way the farmer’s harvest is impacted through platforms like the Visa Everywhere Initiative – an open innovation programme that helps startups to unlock new opportunities. Among those to benefit from this initiative is ThriveAgric, with a vision to “build an Africa that feeds herself and the world”. Their partnership with farmers, initially, allowed Ayo and Uka, the co-founders,
to design the technology around the
problem they were trying to solve, food security in Nigeria. 

Leveraging its technology to empower smallholder farmers, ThriveAgric drew on Visa’s credentials to enable access to the digital economy, unlocking new opportunities for farmers in Nigeria, Ghana, Kenya and other parts of Africa. 

Making payments accessible, affordable and secure, by aligning with fintechs and financial institutions as partners, eight of the 17 SDGs are more easily achieved.

The objective is real growth, as illustrated in a recent Moody’s Analytics study of 70 countries, where digital payments added $245bn to real gross domestic product. As access to technology in communities across Africa gains momentum, a clearer path towards inclusive growth develops. 

One of Visa’s strategic partners is Djamo, a Côte d’Ivoire-based enterprise collaborating with the financial ecosystem to provide historically underserved people with access to the digital economy. Since its inception in 2020, Djamo has processed approximately $826m-worth of transactions, with more than 1.2m registered users of its app. With this successful implementation in Côte d’Ivoire, the
UEMOA market presents a real opportunity, with operations underway in
Senegal and the goal being to expand into other markets. 

Empowering Africa’s businesswomen

Strength lies in the network of financial institutions that increase access to financial services. Together with Société Générale Maroc, Commercial International Bank Egypt, Absa Kenya, Orange Bank Côte d’Ivoire, and Fin’Elle – Group COFINA, Visa launched ‘She’s Next’ in key African markets to increase and diversify opportunities for women-led businesses. 

She’s Next is a global advocacy programme that aims to support women striving to finance, manage, and expand their small businesses. Since 2020, Visa has invested around $3m in over 250 grants and coaching for women SME owners through the She’s Next grant programme, including in the US, Canada, India, Ireland, Ukraine, Kazakhstan, Saudi Arabia, UAE, Egypt, Pakistan, Kenya, South Africa, Côte d’Ivoire and Morocco. 

Women entrepreneurs play such an important role in driving economic growth and supporting social development, making this initiative a powerful engine for meaningful change in Africa and the world. 

Staying secure and smarter money decisions

Contributing to financial inclusion extends to consumer protection. In today’s digital-first world, scams for tricking unsuspecting consumers are evolving in their sophistication. As such, education is key if individuals are to stay secure and continue to make smarter money decisions. 

For the payments industry, staying several steps ahead of fraudsters is critical, which is why at Visa, securing the digital landscape through advanced technology has been a top focus for more than 60 years. Over the past five years alone, more than $10bn has been invested globally in technology, including measures to help reduce fraud and enhance network security.

And to maintain the highest level of protection, coalitions and platforms are instrumental to strengthening and preserving assets. The inaugural Financial Education 2024 Summit co-hosted by Visa, the JSE and the Financial Sector Conduct Authority emphasised the importance of trust in the financial services industry as a shared responsibility. For the simple reason that we are all custodians of the common digital financial platform shared across the world. 

It also highlighted the importance of embedding financial literacy at school level because consumers who are financially knowledgeable and empowered are more likely to save, spend, borrow and insure responsibly, while being less prone to falling victim to fraud. 

Empowerment is a crucial step in combatting fraud, and education and awareness are critical. In collaboration with Aflatoun we delivered tailored financial education sessions for youth and adults alike in the context of Global Money Week – thus leveraging strengths, capabilities and connections to increase awareness, education, and the use of
advanced technology to enhance security.

Moving forward together

Savings and Credit Cooperatives (SACCOs) play a critical role in promoting financial inclusion and supporting economic growth. They account for over 43m  members, according to the World Council of Credit Unions. 

Visa is strengthening existing investments with a dedicated programme for SACCOs, through a partnership with the African Confederation of Co-operative Savings and Credit Associations in Kenya and Tanzania. 

The focus is on accelerating financial inclusion for underserved communities, such as moto-taxis, women in business, police and students. At inception, a baseline survey established that there is a noticeable decline in the percentage of unbanked people within these two countries; however, access to financial services is hampered by challenges including, limited financial and digital literacy, security concerns, infrastructure availability, and issues relating to regulatory and user trust and perceptions.

The project aims to address some of these challenges directly by providing SACCOs with a blend of financial education, access to digital payment solutions, and engaging different stakeholders including government, financial institutions, cooperative banks and others to foster a targeted and widespread adoption of digital financial services in both countries. 

Transforming access 

Further progress in achieving the SDGs is possible with partners like Neolli, a Moroccan digital marketplace platform that provides an opportunity for 2.5m artisans – comprising 30% of the workforce and contributing 7% to GDP – to access the digital economy. This is especially true for women, who represent 80% of artisans in Morocco.  

Moving down south to Namibia, Visa is collaborating with partners like the One Economy Foundation and the country’s financial institutions to advance youth entrepreneurship, in one of Africa’s most youthful countries – 2.1m under the age of 35, within a population of roughly 3.5m. The initiative not only provides access to financial services but also crucial financial knowledge and skills to enhance financial management capabilities, and exposure to government services and business support.

Financial inclusion starts in communities, where trust is built. It is by working together that the foundations for a safe and secure digital economy can be strengthened, providing accessibility to more people. Through the power of technology and education, consumers and businesses will build the right connections with governments to play their part in the inclusive growth journey.