The Third International Conference on Financing for Development concluded in Addis Ababa on Thursday with the release of the Addis Ababa Action Agenda, a global framework for the future of financing for sustainable development. The Agenda builds on the ‘zero draft’, which was originally published on 16 March 2015, providing clear guideline recommendations for areas which will be essential for the planning and implementation of sustainable development projects.
Financial inclusion remains one of the highlights of the Agenda, in a clear recognition of its rapidly increasing profile and its undeniable contribution to reducing global poverty. In paragraph 39, the Agenda encourages working “towards full and equal access to formal financial services for all.” However, the Agenda also recognizes the need to ensure national and regional realities are given priority. Rather than declaring top down global targets, the Agenda instead commits to “adopt or review our financial inclusion strategies, in consultation with relevant stakeholders” and to “consider including financial inclusion as a policy objective in financial regulation, in accordance with national priorities and legislation.”
The Agenda document also recognizes the high impact and value that members of the Alliance for Financial Inclusion have brought to this area through the peer-to-peer exchange of experience, expertise and knowledge for which the AFI Network has become widely known. As a result the Agenda recommends broadening this approach to “…expand peer learning and experience-sharing among countries and regions, including through the Alliance for Financial Inclusion and regional organizations.”
With the Addis Ababa Action Agenda officially adopted, it will now be placed on the agenda of United Nations sixty-ninth General Assembly where members will be asked for the Agenda to be endorsed.
Excerpt from the Addis Ababa Action Agenda, Para 39:
Many people, especially women, still lack access to financial services, as well as financial literacy, which is a key for social inclusion. We will work towards full and equal access to formal financial services for all. We will adopt or review our financial inclusion strategies, in consultation with relevant stakeholders, and will consider including financial inclusion as a policy objective in financial regulation, in accordance with national priorities and legislation. We will encourage our commercial banking systems to serve all, including those who currently face barriers to access financial services and information. We will also support microfinance institutions, development banks, agricultural banks, mobile network operators, agent networks, cooperatives, postal banks and savings banks as appropriate. We encourage the use of innovative tools, including mobile banking, payment platforms and digitalized payments. We will expand peer learning and experience-sharing among countries and regions, including through the Alliance for Financial Inclusion and regional organizations. We commit to strengthening capacity development for developing countries, including through the United Nations development system, and encourage mutual cooperation and collaboration between financial inclusion initiatives.