By MAIMBOLWA MULIKELELA –
THE Bank of Zambia (BoZ) is today expected to launch a US$50 million financial package to help expand financial accessibility by the rural population in sub-Saharan Africa countries including Zambia.
The $50 million challenge fund would be administered by the MasterCard Foundation aimed at improving the lives of the rural population and will cater for rural populations in the sub-Saharan region.
BoZ Governor Michael Gondwe said fund would propel business activity through increased access to financial services in rural areas.
The MasterCard Foundation Fund for rural propriety would support innovative ideas that had the potential to grow and have a deep social impact on the lives of rural people throughout sub-Saharan Africa.
“The inaugural fund worth $50 million aimed at increasing access to financial services for at least one million financially excluded people living in rural areas in sub-Saharan Africa. The Fund will be open to applications in 24 countries including Zambia and will operate under two broad categories,” the MasterCard Foundation stated in a statement posted on its website.
The Foundation said the Innovation Competition would support the development of ideas for new products, services or processes that increased access to finance for the rural poor and scaling competition.
This would support the expansion of proven ideas or pilots that had potential to drive financial inclusion in rural Africa.
The majority of rural households in the sub-Saharan Africa remained financially excluded with more than 70 per cent of the families deriving a large portion of their income from agricultural activities.
Many financial service providers lacked the knowledge and capacity to develop appropriate products and services that would enable the rural poor and smallholder farmers to become financially included.
The MasterCard Foundation is an independent, global organization based in Toronto, Canada with more than $9 billion in assets. Through collaboration with partner organisations in 49 countries, it is creating opportunities for people to learn and prosper.
The Foundation’s programmes promote financial inclusion and advance youth learning, mostly in Africa.
