Financial Inclusion Can Help Mitigate Negative Effects of Economic Crisis

Financial inclusion remains a powerful development tool to improve access to finance and support to vulnerable individuals and households during the COVID-19 pandemic induced crisis. More than a year since the advent of the pandemic, like other parts of the world, the MEFMI region is making every effort to contain the situation. Restrictions to curb the spread of the pandemic remain in place in several countries thus economic activity remains subdued. As the pandemic persists, more is still required to promote financial inclusion as measures like physical distancing and lockdowns have a profound impact on the lives of millions of vulnerable people who live on low income and rely on daily earnings to survive. High levels of financial inclusion can help to mitigate the negative effects of economic crisis on poor households thus improving their welfare.
To assist member countries’ efforts to deepen financial inclusion during the COVID-19 pandemic, MEFMI hosted a virtual workshop on Financial Inclusion during COVID-19 Pandemic from 20 – 22 July 2021. The workshop addressed the impact of the pandemic on financial inclusion and highlighted the measures that have been implemented in the region to advance financial inclusion during the pandemic.
The workshop was attended by fifty-eight (58) officials responsible for developing policies, regulations and strategies pertaining to financial inclusion at Ministries of Finance, Central Banks and other financial sector regulatory agencies in MEFMI member countries. The workshop enhanced the participants’ knowledge of financial inclusion, the impact of the pandemic on inclusion and the measures that may be taken to promote inclusion through innovation. In addition, participants learnt about the risks that may arise as a result of increased digitalisation of the financial sector as well as the appropriate policy and supervisory responses to address the emerging risks. The officials are expected to use the acquired knowledge to deepen inclusion and strengthen the regulatory and policy frameworks to maintain stability in their respective jurisdictions.
Mr. Josephat Mutepfa (Regional Expert) and Ms. Evelyne Kilonzo (MEFMI Fellow) facilitated at the workshop assisted by Messrs Patrick Mutimba and Noel Mahombera from the MEFMI Secretariat.

Prepared by Noel Mahombera