Presentation at CGAP event, "The Evolving Role of Funders and DFIs in Advancing Financial Inclusion" (14 Nov 2012)

1. Facilitating financial market
development
Mark Napier
Director – FSD Africa
14 November 2012

2. Facilitation
• Creating the conditions to allow certain things to
happen
– Catalytic role
– Think tank “plus”
– Mandate driven
• Empowering other people
– Giving people the capacity to do certain things
– Leveraging the capacity of others
• Making things easier
– De-risking
– Unblocking logjams
Public private character – doings things the private
sector will not do and that the public sector cannot

3. FinMark Trust role (2004-9)
• FinScope surveys: measuring access, creating a
Creating baseline, supporting innovation, segmentations
market • Consumer insights: FinScope, Financial Diaries
• Thematic scoping studies: housing finance, insurance
conditions • Forums, seminars, conferences, workshops
• Data insights to justify policy action, commercial
Empowering innovation or actions by other donors
• Support to gov’t institutions (eg National Treasury, FSB)
other people • Taking SA experience into the wider African region
• Seed funding to new institutions: Cenfri, CAHF
• Hand holding on policy change processes – drafting
Making TORs, evaluating consulting proposals
things easier • Funding embedded advisers (eg social grants)
• Grants to innovators (eg Wizzit)

4. Building motivation
Market Access
catalyst indicators
Research
Tools
Building the Dialogue
motivation for Strategies
access Capacity support
International
advocacy
Building a BoP Market insights Innovation support
story Downscaling Capacity support
Case studies

5. Effectiveness of systemic approach
• Analytical rigour
– Allows for proper target-setting and for resource
mobilisation
– Identifies binding constraints
• “Crowding in” effects
– Information: public goods that everyone can use
– Innovation: demonstrations that can be replicated
• Emphasis on sustainability
– Lasting effects, eg:
• Legislation that allows for institutional development and
supports innovation and competition
• Market information

6. Lessons for donors
• Provide adequate funding for a long enough time
– Pay thoughtful attention to the question of exit
• Facilitators need to be independent, credible and
trusted
– Political economy arrangements are “make or break”
– Ideally locally owned and managed
• Get an appropriate balance between macro,
meso, micro
• Encourage a flexible, responsive operating model
– Be ambitious but don’t set goals that are too
definitive