Brief

COVID-19 and Digital Financial Inclusion in Africa : How to Leverage Digital Technologies During the Pandemic

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collection.link.157
https://openknowledge.worldbank.org/handle/10986/9388
collection.name.157
Miscellaneous Knowledge Notes
dc.contributor.author
Machasio, Immaculate Nafula
dc.date.accessioned
2020-10-16T20:44:53Z
dc.date.available
2020-10-16T20:44:53Z
dc.date.issued
2020-10
dc.date.lastModified
2020-10-17T05:10:53Z
dc.description.abstract
The COVID-19 (coronavirus) pandemic and resulting containment measures are likely to cause an economic contraction of about 2.8 percent in Sub-Saharan Africa (SSA) in 2020 according to the Global Economic Prospects. Among the many adverse effects in the global economy, the crisis is posing a deep threat to financial inclusion efforts globally. Lockdowns and curfews designed to curb the spread of the virus resulted in the closure of bank branches and halted operations of mobile money agents in compliance with restrictions. Government officials and health practitioners encouraged use of cashless and contactless modes of payment to reduce the risk of virus spread through handling of cash, thus creating new opportunities for potential adoption of Digital Financial Services (DFS). Small firms and low-income households can directly benefit from digital solutions such as mobile money services, online banking and other financial technology innovations. Recent evidence suggests that digital financial inclusion could significantly contribute to economic growth, reduce poverty and narrow income inequalities without necessarily causing adverse effects on financial stability given the appropriate regulatory framework. The brief focuses on the impact of COVID-19 on financial inclusion and the potential of robust policy responses. The authors drew on the Global Findex database to showcase policy options that harness maximum benefits from digital technology, promoting financial inclusion and mitigating adverse impacts during the pandemic and beyond. The poor and vulnerable groups, such as women, the rural poor and youth, are bearing the economic brunt of the socioeconomic consequences of the pandemic. Day laborers and those in the informal sector are also among the most affected categories of workers.
en
dc.identifier
http://documents.worldbank.org/curated/en/918121602706504126/COVID-19-and-Digital-Financial-Inclusion-in-Africa-How-to-Leverage-Digital-Technologies-During-the-Pandemic
dc.identifier.uri
http://hdl.handle.net/10986/34637
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Africa Knowledge in Time Policy Brief;
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
FINANCIAL INCLUSION
dc.subject
FINANCIAL SERVICES
dc.subject
MOBILE MONEY
dc.subject
DIGITAL TECHNOLOGY
dc.subject
ACCESS TO FINANCE
dc.subject
CORONAVIRUS
dc.subject
COVID-19
dc.subject
GLOBAL FINDEX
dc.subject
POLICY RESPONSE
dc.subject
PANDEMIC IMPACT
dc.title
COVID-19 and Digital Financial Inclusion in Africa
en
dc.title.subtitle
How to Leverage Digital Technologies During the Pandemic
en
dc.type
Brief
en
okr.date.disclosure
2020-10-14
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Brief
okr.docurl
http://documents.worldbank.org/curated/en/918121602706504126/COVID-19-and-Digital-Financial-Inclusion-in-Africa-How-to-Leverage-Digital-Technologies-During-the-Pandemic
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b087eb1915_1_0
okr.identifier.internaldocumentum
32486167
okr.identifier.report
153673
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/918121602706504126/pdf/COVID-19-and-Digital-Financial-Inclusion-in-Africa-How-to-Leverage-Digital-Technologies-During-the-Pandemic.pdf
en
okr.region.administrative
Africa
okr.region.geographical
Sub-Saharan Africa
okr.topic
Finance and Financial Sector Development :: Access to Finance
okr.topic
Finance and Financial Sector Development :: E-Finance and E-Security
okr.topic
Finance and Financial Sector Development :: Finance and Development
okr.topic
Finance and Financial Sector Development :: Payment Systems & Infrastructure
okr.unit
Office of the Chief Economist (AFECE)

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