May 10,2022 (ENA) United Nations Capital Development Fund (UNCDF) has launched a digital financial services (DFS) working group in Ethiopia today.
The DFS working group is aimed at collaborating and networking, capacity building, and policy advocacy as well as lobbying.
It will also provide an appropriate forum for industry-level dialogue where DFS stakeholders such as government, mobile network operators, banks, Microfinance institutions, development partners engage regularly.
UNCDF East and Southern Africa Inclusive Digital Economies Regional Manager, Mike McCaffrey told ENA that the working group will have important of coordination that can support the development of the entire digital finance services.
The digital financial service not only enables the low-income and rural people to participate in that economy but also to own it and engage, he said, adding that this is critical component to put in place.
“In this globalized economy, we do not necessarily want to see the global FinTech giants or technology giants coming here and provide services to the population. We want to see jobs created for Ethiopians, we want to see them have the types of education that allows them to engage in the highest levels of the economy,” the Regional Manager elaborated.
UNDCF Digital Financial Services Expert, Endashaw Tesfaye said on his part the working group in alignment with country’s digital strategies will be expanding digital financial services in remote areas at less costly manner in the country.
He added that the opportunity is immense, not just only to provide new and innovative products but also to collaborate among industry players.
“The government has set new directives for financial service providers to come up with new products and allowing non-financial institutions to provide financial services. This by itself is a big opportunity which will bring onboard new financial service providers and with these companies it will have its own trickledown effect in creating new jobs, and access to financial services,” Endashaw noted.