Officials from across Africa and around the world convened in Maputo, Mozambique on 17 May to mark the 40th anniversary of the Banco de Moçambique (BM). The event celebrated the economic progress and growth of Mozambique over the last 40 years, and gave an opportunity for wider discussions on the future path of economic development in Africa, with a particular focus on the benefits of financial inclusion.

The event opened with a presentation by Banco de Moçambique Governor, Ernesto Gove, who set the tone of the event by highlighting how the day’s theme, ‘The role of financial inclusion in economic growth: challenges and prospects’, also reflected the priorities of the Banco de Moçambique. “Financial inclusion is our priority and our desire”, said Governor Gove, “it’s about giving all people opportunity”.

The keynote address was delivered by Alfred Hannig, Executive Director at AFI. Mr. Hannig’s presentation focused on financial inclusion’s role as a catalyst for development, growth, economic inclusion and social stability. He made note of the strong leadership Africa has shown to the world in this field with many of the most innovative and successful financial inclusion policy developments originating from the continent. Mr. Hannig was also quick to highlight the real impact that financial inclusion policy has made, and suggested that its wide scope is helping to create better global engagements. “Financial inclusion policy is a global integrator. It brings people together, creates bridges for knowledge and brings benefits to all countries.”

Using statistics from the AFI Policy Profile Platform and the recently released World Bank Findex report, Mr. Hannig outlined some clear and measurable relationships between different elements of financial inclusion policy and the reduction of numbers in the world’s unbanked. While stressing that current information is preliminary and in some cases incomplete, Mr. Hannig highlighted some strong trends that had emerged. Countries with a focus on developing and expanding digital financial services, those who were actively promoting financial literacy and those with national strategic commitments had a clear advantage, outperforming their peers in financial inclusion progress. Mr. Hannig identified a positive relationship between countries that have measurable financial inclusion targets and the progress made in reducing the number of unbanked. The data also showed that those counties with Maya Declaration Commitments were leading the way, indicating the power that making public commitments can have on inspiring institutions to achieve their goals.

“We have never doubted the value that AFI membership can bring to institutions that are focused on financial inclusion policy,” said Mr. Hannig. “But as we continue to gain access to better data, it is clear that AFI members are setting the pace of progress in the areas that are making the greatest impact on financial inclusion progress.”

Mr. Hannig made a special point of recognizing the inclusion efforts made by Banco de Moçambique and its long-standing membership in the AFI Network. He noted the bank will host the 2015 AFI Global Policy Forum (GPF) 1-4 September in Maputo, bringing the international event back to Africa for the first time since 2012.

Panels held during the rest of the event included focused discussions on ‘Electronic money and financial and economic inclusion’ and ‘Banking and its contribution to financial services access and use’. High-level speakers in these panels included former Prime Minister Mrs. Luisa Dias Diogo, Banco Central do Brasil Deputy Governor Luiz Edson Feltrim, General Manager of Banco Portugal Mr. Joao Amaral Tomaz, former Governor of the Central Bank of Kenya, Professor Njunguna Ndung’u, Vodafone Chairman of the Board Mr. Jerry Mobbs, and World Bank Senior Director Mrs. Gloria Grandolini.

Financial literacy and consumer protection were highlighted as powerful tools for the advancement of financial inclusion. Having the central banks take a leading role in this was shown to have some advantages, however to fully reach all sectors and levels of the population in a comprehensive and cost effective way, dialogue and cooperation with education ministries, commercial banks and private sector actors was also highlighted as an effective and successful strategy.

The important role of digital financial services was introduced by Professor Ndung’u, who argued digital technology can resolve the most important barriers financial access. “Barriers to the poor include minimum balances and physical distances. If we can provide a service that is secure, easily accessible and can accept the small transactions which the poor require, they will flock to it.” But to trigger widespread adoption panelists stressed the need for an enabling regulatory environment, a good balance of products and a strong cooperative effort to educate and inform. Fear of change was raised as a mental barrier for many poor areas that may be aware of e-money services, but will hesitate to let go of a traditional cash culture.

In the closing session Governor Gove said that there had been no teacher and no student at event. Valuable lessons had come came from panelists and participants, showing that everyone has a role to play in advancing financial inclusion. The Governor highlighted three takeaways from the day’s discussions. First that the central bank can be the main driver for financial inclusion, but that partnerships from banks, telcos, and others would be essential for long-term success. Second, access remains the first step in reaching the poor, since being close to the people is essential. And thirdly, financial inclusion products must be appropriate for the real and practical needs of users.

Just ahead of the anniversary event, Banco de Moçambique also hosted the Annual Meeting of the Committee of Central Bank Governors (CCBG) of the Southern African Development Community (SADC). At the closed-door meeting, AFI’s Executive Director was invited to give a short brief on financial inclusion’s impact in SADC countries and to encourage further engagement as well as explore common opportunities to advance financial inclusion objectives. Of the 15 SADC members only two are not currently members of the AFI Network.

Banco de Moçambique joined the AFI Network in October 2011. The bank’s Maya Declaration Commitment includes a focus on agent banking, financial literacy, and a commitment to launch a comprehensive financial inclusion strategy in 2015. Governor Gove was also recognized as ‘2015 Central Bank Governor of the Year from Africa’ by Financial Times-owned magazine The Banker, for his efforts in stimulating growth and stabilizing the economy.