On 19 December, Madagascar reached an major milestone in its financial inclusion journey as AFI and the Central Bank of Madagascar validated draft regulations on agent networks and credit participation (crowdlending). The one-day stakeholders’ workshop marked a key step toward expanding access to formal financial services, particularly for MSMEs, rural, isolated and underserved populations.

The workshop was organized under AFI’s In-Country Implementation (ICI) initiative, with technical support from consulting firm NEXCENDA. It brought together public and private sector stakeholders, including regulators, financial institutions, and industry representatives, to review and provide final input on the draft regulations.

The initiative supports Madagascar’s efforts to advance financial inclusion, a national priority given that 41 percent of adults remain excluded from both formal and informal financial services, according to the 2016 FinScope survey. The draft regulations align with the country’s National Financial Inclusion Strategy and ongoing reforms under the 2020 Banking Law.

 “This regulatory framework is designed to spur economic development by enabling crowdlending as a practical alternative source of finance,” said Tsilavo Haja, Director of Regulation and Studies at the Central Bank “It will expand access to capital for MSMEs and underserved communities, while strengthening the agent network that supports last‑mile financial inclusion.”

Participants discussed how the proposed rules can help expand access to financial services, particularly for rural and underserved communities, while strengthening consumer protection and managing risks proportionately. Stakeholders had received the draft texts in advance, and feedback gathered during the workshop will inform the final versions.

“Today, we arrive at a key moment in the process — validating draft regulations that aim to diversify access to inclusive credit through crowdlending platforms and expand financial services through safe and well-regulated agent networks,” highlighted Ira Aprilianti, AFI Senior Policy Analyst.

She also emphasized AFI’s approach: “Our In-Country Implementation program is designed to help member institutions move from strategy to action, combining international best practices with local realities.”

The workshop marked an important culmination of the ICI, following extensive desk research, stakeholder interviews, virtual peer learning exchanges, and peer reviews with the support of seventeen AFI member institutions, including Bank Al-Maghrib, the Bank of Ghana, the Bank of Tanzania, and the Central Bank of Nigeria.

The validated regulations are expected to strengthen Madagascar’s regulatory framework, support innovation in the financial sector, and accelerate progress toward broader and safer financial inclusion.