Africa Urged to Prioritize Vulnerable Groups to Close Financial Inclusion Gap

More than one in four people in Sub-Saharan Africa still lack access to financial services, a reality that continues to limit the region's ability to withstand growing crises — from conflict and climate disruptions to migration and economic shocks. As these challenges intensify, policymakers, development banks, and private sector leaders are calling for renewed efforts to refocus inclusive finance on the most vulnerable populations.

This urgent call to action took center stage at the 2025 Africa Inclusive Finance Week, held under the theme "(Re)focusing on Vulnerable People to Meet Upcoming Challenges in Inclusive Finance." The annual conference brought together representatives from governments, development finance institutions, fintech innovators, civil society, and multilateral organizations to strategize on how to extend affordable, reliable financial services to those who remain excluded.

A Persistent Divide in Access to Finance

Despite decades of progress, financial exclusion remains one of Africa's most entrenched development challenges. According to the African Development Bank (AfDB), more than 300 million adults across the continent remain outside the formal financial system. Rural communities, women, and young entrepreneurs are particularly affected.

Many are unable to open bank accounts or access credit because of missing identity documents, lack of collateral, or limited financial literacy. In fragile and conflict-affected areas, displaced populations and refugees face even greater obstacles. Farmers impacted by droughts or floods often cannot obtain relief funding because they lack proper documentation or digital payment channels.

"Inclusive finance is not just about access—it is about empowerment, resilience, and opportunity for every African, regardless of circumstance," said Alex Mubiru, Director General for the AfDB's East Africa Regional Development, Integration and Business Delivery Office, during the opening plenary. "By learning from global best practices, investing in innovation, and putting clients at the center of everything we do, we can build a more inclusive, resilient, and prosperous Africa."

Recognizing Diverse Needs Across Client Segments

Speakers emphasized that inclusive finance must reflect Africa's diversity—addressing the specific needs of women, youth, small businesses, and rural clients, who together represent the majority of the continent's economic base.

Women entrepreneurs continue to face systemic barriers, such as limited property rights and gender bias in lending. Youth, who make up over 60% of Africa's population, often work in informal sectors without access to credit or savings accounts. Micro, small, and medium-sized enterprises (MSMEs) — which account for more than 80% of jobs in Africa — struggle with short-term financing and digital payment integration.

Through targeted initiatives like gender-focused investments and youth empowerment programs, development partners and financial institutions are working to bridge these gaps. "Empowering these groups is not just social policy—it is sound economics," said Mubiru. "They are the backbone of Africa's future."

Innovation as a Catalyst for Financial Inclusion

A major focus of the AfDB's strategy is investing in digital and innovative financial solutions to overcome structural barriers. Central to this effort is the Africa Digital Financial Inclusion Facility (ADFI), a multi-donor trust fund hosted by the Bank.

Launched in 2019, ADFI has supported dozens of projects aimed at expanding digital finance infrastructure, promoting interoperability between mobile money platforms, and enabling regulatory sandboxes to test fintech innovations safely. By leveraging partnerships with governments, telecom providers, and private investors, ADFI aims to reach 332 million more Africans with digital financial services by 2030.

"Digital innovation allows us to reach clients in places where traditional banking cannot," said an ADFI representative. "From mobile money to blockchain-based remittance systems, technology is helping break down the walls of exclusion that have persisted for generations."

Building a Resilient, Holistic Financial Ecosystem

Conference participants agreed that achieving inclusive finance requires a holistic approach — one that goes beyond expanding digital tools to address the broader systemic and social barriers.

Key priorities include:

• Strengthening physical and digital infrastructure: Expanding rural connectivity, establishing reliable agent networks, and improving access to mobile devices.

• Enhancing regulatory frameworks: Developing tiered Know-Your-Customer (KYC) rules that allow low-income clients to access accounts even without formal identification.

• Improving data and identity systems: Rolling out digital identification platforms to help refugees, women, and informal workers access financial services securely.

• Boosting financial literacy and consumer protection: Promoting community-based financial education to build trust and encourage responsible usage of credit and savings.

• Integrating climate resilience into finance: Supporting farmers, small businesses, and communities through microinsurance and climate-adaptive lending models.

Tackling the Triple Challenge: Conflict, Climate, and Migration

The dialogue highlighted how ongoing conflict, climate shocks, and migration pressures are deepening inequality and threatening the sustainability of financial inclusion gains. Climate change alone could push up to 100 million people into extreme poverty by 2030, disproportionately affecting unbanked communities.

"Inclusive finance must adapt to today's complex crises," said one panelist. "Financial services need to be fast, flexible, and shock-responsive — capable of reaching displaced families, flood-affected farmers, and informal workers who have no safety nets."

The Bank's evolving approach emphasizes resilient financial ecosystems that can respond to disruptions. This includes building climate risk analytics, disaster insurance, and mobile emergency payment systems into national finance frameworks.

Collaboration Between Public and Private Sectors

To achieve scale, the AfDB and its partners stressed the importance of collaboration across sectors. Governments must establish enabling environments and incentives for innovation, while private companies, especially fintech firms, play a critical role in designing solutions tailored to real-world needs.

The AfDB's partnerships with leading fintech innovators, commercial banks, and civil society organizations are already showing results. For instance, digital credit platforms are helping informal traders access working capital, while mobile savings applications are allowing women in rural areas to save securely for the first time.

The Path Forward

As Africa faces mounting economic and climate pressures, inclusive finance stands as a lifeline for empowerment and resilience. The AfDB's multi-dimensional strategy—spanning policy reform, digital innovation, capacity building, and partnerships—aims to ensure that no one is left behind.

"The future of inclusive finance in Africa lies in intentional collaboration and a focus on people, not just systems," Mubiru concluded. "By empowering the most vulnerable, we strengthen the foundation of Africa's growth and resilience."

The 2025 Africa Inclusive Finance Week ended with a shared commitment among stakeholders to expand financial access, innovate responsibly, and accelerate progress toward a financially inclusive, climate-resilient, and equitable Africa.