Publication: Financing Africa : Through the Crisis and Beyond
Date
2011-09-07
ISSN
Published
2011-09-07
Author(s)
Abstract
Financing Africa: through the crisis and
beyond is a call to arms for a new approach to Africa's
financial sector development. First, policy makers should
focus on increasing competition within and outside the
banking sector to foster innovation. This implies a more
open regulatory mindset, possibly reversing the usual
timeline of legislation-regulation-innovation for new
players and products. It also implies expanding traditional
infrastructure, such as credit registries and payment
systems beyond banks. Second, the focus should be on
services rather than existing institutions and markets.
Expanding provision of payment, savings and other financial
services to the unbanked might mean looking beyond existing
institutions, products, and delivery channels, such as
banks, traditional checking accounts, and brick-and-mortar
branches. All financial sector policy is local. To reap the
benefits of globalization, regional integration, and
technology, policy makers have to recognize the politics of
financial deepening and build constituencies for financial
sector reform. While the challenges of expanding access,
lengthening contracts, and safeguarding the financial system
are similar, the ways of addressing them will depend on the
circumstances and context of each country. With its
cautiously optimistic tone, this book creates an opportunity
for Africa's policy makers, private sector, civil
society, and development partners to harness the progress of
the past as a way to address the challenges of the future
and enable the financial sector to play its rightful role in
Africa's transformation.
Citation
“Beck, Thorsten; Maimbo, Samuel Munzele; Faye, Issa; Triki, Thouraya. 2011. Financing Africa : Through the
Crisis and Beyond. © World Bank. http://openknowledge.worldbank.org/handle/10986/2355 License: CC BY 3.0 IGO.”