FSD Africa is a £35 million program funded by DFID to reduce poverty in sub-Saharan Africa by developing efficient, robust and inclusive financial markets. It aims to do this by identifying and addressing market failures, building the capacity of local actors, and fostering collaboration across the financial sector. FSD Africa works with a variety of partners including governments, private institutions, donors and thought leaders on initiatives focused on financial inclusion, finance for growth, and supporting the broader FSD Network across the region.

1. fsdafrica
FSD Africa
Strategic Plan
2013–2018
Summary
REDUCING POVERTY
THROUGH FINANCIAL SECTOR DEVELOPMENT

2. This is Africa’s century…
Poverty is reducing
Cities are booming
Over a decade of economic
stability and growth
Its people are young
and resourceful
Financial markets are
playing a key role…
Providing capital for growth,
investment and jobs
Providing services that
reduce vulnerability
A bridge to reach the
excluded – women, rural
dwellers and the poor
Despite progress,
financial markets
remain constrained…
The Challenge
The
investment
gap in Africa for
infrastructure is
per year
$32 bn
©JohnFerguson,Oxfam
There is too little capital:
• to build housing and key infrastructure, or
• grow the companies that provide jobs
and prosperity
Around 200 million adults still have no
bank account to:
• receive a loan to grow a small business
• save to send a child to school, or
• insure against illness
FSD AFRICA – STRATEGIC PLAN 1

3. 2 FSD AFRICA – STRATEGIC PLAN
Some definitions…
What is
Financial Sector
Development?
“…emergence of a
robust efficient and inclusive
financial market system”
What is
Finance for
Growth?
“…provision of capital to investment-
ready sectors to drive inclusive
economic growth”
What is Financial Inclusion?
“…expansion of a range of financial services (including saving and deposit
services, payment and transfer services, and credit and insurance) to
businesses and all sections of society”
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3
2
FSD AFRICA – STRATEGIC PLAN 3
What is FSD Africa?
To do this, FSD Africa acts as
a market facilitator or catalyst.
It applies a combination of
resources, expertise and
research to address financial
market failures and deliver
a lasting impact. FSD Africa
has a mandate to work
across sub-Saharan Africa
on issues that relate to both
‘financial inclusion’ and
‘finance for growth.’
FSD Africa is also a
regional platform. It fosters
collaboration, best practice
transfer, economies of scale
and coherence between
development agencies,
donors, financial institutions,
practitioners and government
entities with a role in financial
market development in
sub-Saharan Africa.
In particular, FSD Africa
provides strategic and
operational support to
the FSD Network.
Created in 2012, FSD Africa is a £35 million, DFID-funded
financial sector development programme or ‘FSD’ based
in Nairobi. It aims to reduce poverty across sub-Saharan
Africa by building financial markets that are efficient,
robust and inclusive.
The Response

4. FSD AFRICA – STRATEGIC PLAN 54 FSD AFRICA – STRATEGIC PLAN
The FSD Network is a group
of nine financial sector
development programmes
or ‘FSDs.’ Located across sub-
Saharan Africa, it includes seven
national FSDs (Access to Finance
Rwanda, Enhancing Financial
Innovation Access in Nigeria,
FSD Kenya, FSD Moçambique,
FSD Tanzania, FSD Uganda and
FSD Zambia) and two regional
FSDs (FinMark Trust in Southern
Africa and FSD Africa).
The FSD Network specialises
in a number of themes from:
agricultural finance and
digital financial services,
capital markets development,
financial market regulation
and saving groups.
The FSD Network has
around 100 members of
staff and represents over
£290 million of DFID;
Bill Melinda Gates
Foundation; SIDA; DANIDA;
Foreign Affairs, Trade and
Development Canada;
RNE (Netherlands) and
World Bank funding.
Financial inclusion
helps makes sure
that poor people
benefit from growth
processes, ensuring
that no-one gets
left behind
Chief Economist, DFID, 2014
Africa needs to
become a laboratory
for innovation…
in financial sector
development,
especially with
regard to long-
term finance
World Bank, 2011
What is the FSD Network?
FSD UGANDA (2014)
FSD KENYA (2005) and
FSD AFRICA (2012)
FSD TANZANIA (2005)
FSD MOÇAMBIQUE
(2014)
ENHANCING FINANCIAL
INNOVATION ACCESS
IN NIGERIA (2007)
ACCESS TO FINANCE
RWANDA (2011)
FSD ZAMBIA (2013)
FINMARK TRUST (2002)
“”

5. FSD AFRICA – STRATEGIC PLAN 76 FSD AFRICA – STRATEGIC PLAN
Finance for
all involves
interventions
designed to
increase access
to finance in order
to empower and
reduce the
vulnerability
of the poor.
Finance for
growth involves
interventions
designed to
provide capital to
investment-ready
sectors in order
to drive inclusive
economic growth.
FSD network
support involves
interventions
designed to foster
collaboration, best
practice sharing
and harmonisation
between FSDs in
order to improve
effectiveness and
achieve value
for money.
Priority areas
FSD Africa has three main areas of work
Market
facilitation
FSD Africa is a
market facilitation
programme
It identifies key market
failures and addresses
them by: building
the capacity of, and
incentivising local actors
to deliver projects that
achieve a long-lasting,
significant impact on
financial markets.
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What does
FSD Africa do?
RETAIL PAYMENTS,
INTEROPERABILITY + G2P
AGRICULTURE
FINANCE
CREDIT MARKET
DEVELOPMENT
GROWTH
ACTIVITIES
To deliver on these areas, FSD Africa’s
Strategic Plan (2013–2018) structures
work into four pillars.
By 2018, FSD Africa will have
contributed to the development
of more eff icient, robust and
inclusive financial markets in
sub-Saharan Africa. Specifically,
FSD Africa will:
Work with 20+ financial
institutions to build
their capacity
Work with partner financial
institutions to provide 2.3 million
savings accounts and 700,000
credit accounts to women, rural
dwellers and the poor
Worked in two post-
conflict countries and one
Francophone country
Trained 5,000 financial sector
professionals through local and
international partners
FSD Africa’s Strategic
Plan (2013–2018)
FSD Africa’s
Objectives
CHANGE
MANAGEMENT
BUILDING SERVICES
MARKETS
REGIONAL CENTRES
OF EXCELLENCE
REGIONAL
RESEARCH
INFORMATION
PRODUCTS
IMPACT
EVALUATION
FSD NETWORK
SUPPORT
STAKEHOLDER
CO-ORDINATION
PILLAR 1
SKILLS
DEVELOPMENT
AND TRAINING
PILLAR 4 – REGIONAL PLATFORM
PILLAR 2
KNOWLEDGE
AND EVIDENCE
PILLAR 3
THEMATIC
PROGRAMME
FSD AFRICA – STRATEGIC PLAN 7

6. Private Sector
• Microfinance institutions
• Banks
• Stock exchanges
• Brokers
• Telecommunications
companies
• Insurance companies
• Private equity firms
Public Sector
• Central banks
• Ministries of finance
• International and
national regulators
• National pension funds
Please find below a non-exclusive list of the types
of organisations with which we work:
We also work with a range of expert practitioners and
thoughtleaders to support the delivery of our projects.
Donor and DFIs
• Department for
International Development
• Deutsche Gesellschaft
für Internationale
Zusammenarbeit (GIZ) Gmbh
• Bill Melinda Gates
Foundation
• Making Finance Work
for Africa
• The Mastercard Foundation
• UNCDF
FSD AFRICA – STRATEGIC PLAN 9
Who
do we do
it with…?
Example
projects
WOMEN’S WORLD
BANKING (WWB)
USD 7.1m to WWB for work with
NMB (Tanzania), Diamond Bank
(Nigeria) and NBS (Malawi) to
develop saving and credit products
for 1m low income men and women
by 2018.
GIZ UGANDA
USD 362k to GIZ for work with
up to two Ugandan financial
institutions to provide productive
loans to 18k coffee farmers through
a smart-phone system by 2017.
LONDON STOCK EXCHANGE
GROUP (LSEG) ACADEMY
USD 137k to LSEG Academy to
train 103 leaders, middle managers,
rising stars and trainers from across
Tanzania’s capital markets.
CONSULT HYPERION AND
KATUNI CONSULTING
USD 183k for primary research in
Somalia and the design of technical
solutions to enhance customer due
diligence and payment monitoring
along the UK – Somalia remittance
corridor to safeguard access to
finance for up to 3.4m Somalis.

7. FSD Africa, Nairobi, Kenya
info@fsdafrica.org
@fsdafrica
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Deep, efficient
and inclusive
financial markets
that are responsive
to the broader
developmental needs
of Africa’s economies
and its people
VISION
MISSION
To be a resource to
facilitate innovation
skills development
and research to
encourage the
development of
African markets
that are robust
and inclusive