ACCOSCA AND VISA LAUNCH A PROJECT TO BOOST FINANCIAL INCLUSION IN KENYA AND TANZANIA

In a bid to improve the access and usage of formal financial services among underserved communities and small businesses in Kenya and Tanzania, the African Confederation of Co-operative Savings and Credit Associations ( ACCOSCA)  and Visa, a global leader in digital payments, have partnered to launch the Financial Inclusion in Kenya and Tanzania (FIKT) project.

The project aims to leverage the co-operative and SACCOs’  movement and the Visa network to reach millions of unbanked and underbanked people across the two countries. Additionally, it  will support the development and delivery of innovative and affordable financial products and services that meet the needs and preferences of the target segments.  Moreover, it will  enhance the capacity and sustainability of the participating co-operative societies and their apex organizations, besides  fostering   a conducive policy and regulatory environment for financial inclusion. By the same token,  it  will conduct awareness campaigns and financial literacy programmes  in  order  to  increase the demand and uptake of formal financial services among the potential and existing customers.

Embodiment

Speaking during the official launch of the project, Hon. Simon Chelugui, Cabinet Secretary , Ministry of Cooperatives and Micro, Small, and Medium Enterprises Development applauded ACCOSCA and Visa for their cooperation to create an inclusive and enabling environment that empowers men, women  and youth in Kenya and Tanzania to overcome financial barriers and achieve their economic aspirations.  He  termed   it   a true embodiment of the cooperative principles and philosophy. “The project stands resolute in accelerating and supporting the national government’s efforts towards providing services to the unbanked  and fostering financial literacy and resilience, ensuring that no one is left behind in our collective journey towards prosperity as envisioned by the government’s transformation agenda, “  Hon. Chelugui added.

 In his speech,  Mr.  George Ombado, executive director of ACCOSCA revealed that the purpose-driven partnership is committed to advancing inclusive, equitable, and sustainable growth for the citizens in both countries. “ACCOSCA is very intentional in enhancing  financial inclusion through financial education and digital financial solutions across Africa, “ said Mr. Ombado. “  We want to see our people access financial products and services therefore foster economic growth, promote entrepreneurship, investment and productivity, hence  allowing  vulnerable communities to invest in education and healthcare while shielding them from financial vulnerabilities” he added.

Financial inclusion

While making her remarks, Eva-Ngigi-Sarwari, country manager of Visa Kenya said a blend of financial education and uptake of digital payments holds the potential to rapidly advance financial inclusion and economic growth for micro, small and medium  enterprises   ( MSMEs)  in Kenya and Tanzania, who form a large base of the current   and potential members in SACCOs.  “This can be done through developing targeted training programmes specifically for women, considering their unique financial requirements and challenges as well as partnering with women-led organizations and community groups to expand outreach and accessibility,” she said.

The FIKT project is expected to have a significant impact on the socio-economic well-being of the beneficiaries. It will also   contribute to the achievement of the Sustainable Development Goals (SDGs), especially SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities). The project will also align with the national development plans and strategies of Kenya and Tanzania.  They include   Vision 2030 and the Big Four Agenda in Kenya, as well as   the Vision 2025 and the Five-Year Development Plan in Tanzania.

The launch was attended by representatives from ACCOSCA, Visa, the co-operative sector, the government, the private sector, the civil society, the media  and other stakeholders. The speakers at the event highlighted the importance and relevance of the FIKT project, as well as the opportunities and challenges of advancing financial inclusion in Kenya and Tanzania. They also expressed their commitment and support to the successful implementation and scaling up of the project.