Financial Services Development in Africa

The Making Markets Work for the Poor (M4P) approach hinges on facilitation, rather than direct implementation, and as such, represents a radical shift in how donors envision and how development actors interact with financial systems. Although the theoretical frameworks for this approach are well developed, there is a comparative lack of detailed analysis regarding application in the financial sector.Significant questions remain how to apply M4P frameworks and tactics to fragile and conflict-affected states or conflict-affected regions within specific countries (i.e. Kenya and Uganda). Recognizing the large number of underserved populations and untapped potential, FSD Africa and forward-thinking donors are looking to explore the relevance and applicability of using a M4P approach for financial sector development in FCAS. Mercy Corps will provide guidance to FSDA on different approaches required between ‘fragile’ and ‘conflicted-affected’, and appropriate and realistic financial sector interventions in different stages of conflict: rapid on-set, active, latent, post-conflict and during the unpredictable casual chains between states of conflict as a crisis’s stabilizes or expands. We will also explore different strategy and tactics between conflict typologies (i.e. epidemic or climate-led, ethnic or political instability. Deliverables include a think piece and four complementary mini-studies on financial sector development work in fragile and conflict-affected states (FCAS) in Africa.