Making Finance Work for Africa Partnership
- Date of agreement: December 12, 2007
- Current volume of the fund as of 31 December 2010: Euro 1.4 million
- Financial contributors: AfDB, AfD, DANIDA, DFID, EIB, GTZ, MinBuza, SIDA
Background and Objectives
The Making Finance Work for Africa (MFW4A) Partnership is a G8 initiative launched in October 2007. Its mission is the establishment of a common platform for the harmonization and facilitation of financial sector development and knowledge sharing in Africa. The Partnership brings together donor partners, African governments, the private sector, and other financial sector stakeholders with the aim of unleashing the full potential of Africa's financial sector in order to drive economic development and reduce poverty across the continent.
The MFW4A Partnership Secretariat was established at the AfDB in June 2008 and works to advance the overall objectives of the Partnership by:
- Centralising and disseminating financial sector knowledge;
- Convening partners and facilitating dialogue and exchanges on financial sector themes and challenges; and
- Serving as a broker between supply and demand for financial sector assistance to help improve the coordination and efficiency of donor funding to Africa's financial sector.
Areas of Focus / Sub-Sectors
Financial sector development ranging from access to finance to Capital Markets.
- Donors (through enhanced coordination and transparency of operations); and
- Public and private sector entities (e.g. Ministries of finance, central banks, regulatory bodies, private banks and research centers, etc.) involved in financial sector development in Africa (through enhanced knowledge sharing and access to donors).
Results and Milestones
During 2010, the Partnership continued to expand its role and presence as a convenor of financial sector events that connect donors and stakeholders. The Secretariat organized workshops aimed at harmonizing donor activities in Africa's financial sectors and also designed to ensure the development or sharing of knowledge on specific financerelated themes.
- The Remittances Working Group Workshop, Tunis, October 2010: The MFW4A Partnership hosted the second face-to-face meeting of the MFW4A Remittances Working Group which was held in Tunis on 28h October 2010. The workshop brought together Donors/Development partners active in the field to discuss shared priorities and objectives, take stock of ongoing activities, exchange information, and coordinate future interventions. Participants included representatives of the AfDB, MFW4A, the AFD, the French Government, Epargne sans frontière, GIZ, IOM, MinBuza, the Italian Government, DfID and the World Bank.
- Joint Donors/Stakeholders SME Finance Workshop: The Secretariat organized a joint donors/stakeholders workshop on the theme „SME Finance: the Missing Link. The workshop was aimed at allowing financial institutions, private sector institutions, policy makers and donors to present and discuss available options in addressing SME financing gaps in Africa. The workshop drew more than 50 participants and dealt with the challenges, opportunities, and available donor financing options for SMEs in Africa. The workshop was concluded with the establishment of a Stakeholder Working Group on SME finance. This is coordinated by the Making Finance Work for Africa Partnership Secretariat in order to facilitate the implementation of the G20 SME Finance Agenda on the continent and the interaction between African stakeholders and development partners. The Secretariat is carrying out preparatory work for the Group's first meeting which has been scheduled for May 2011.
- MFW4A Book II: Consultation tour: The team of authors consulted key stakeholders on their preliminary findings, conclusions, and recommendations in a series of consultation workshops, coordinated by the MFW4A Secretariat. The consultation tour, which took place in Tunisia, Kenya, South Africa and Senegal, raised strong interests among local stakeholders and proved to be a valuable networking exercise that contributed in raising awareness around the upcoming publication and in general around MFW4A's activities. Over 60 participants, representing 50 different stakeholders and donors took part in the events and provided relevant feedback to the process of integrating and completing the final draft of the publication.
- Dissemination of information The MFW4A Partnership website went live on 19 April 2010. The website, which is in both English and French, serves as a knowledge hub for Africa's financial sectors and is organized around a thematic and country structure. It centralizes available data, news, links and other resources on to a single online platform.MFW4 has other means of infomation such as newsletter, Africa Finance Forum held bimonthly in the blog, weekly press digest and the MFW4A Book II “Financing Africa”.
Administration and Governance Structure
- The Partnership Forum is composed of partners active in supporting the development of the financial sector in Africa at national and regional levels. The Forum meets once a year to discuss financial sector development topics agreed upon in advance. The next Forum is planned for Q4 2011.
- The Supervisory Committee (SC) is composed of partners who contribute a minimum of US$ 50,000 per year to the Partnership, in cash or in kind. SC members oversee the Secretariat's activities.
- The Secretariat is composed of a core permanent team and supervised by the Partnership Coordinator, conducts the day-to-day activities of the Partnership, including the coordination of partner activities, development and management of the website, and the hosting of events asked for by the partners and the Forum.
Major Activities in 2011-2012/ Additional Resources Required
- Organization of Second MFW4A Partnership Forum (in Q4 2011);
- Launch and dissemination of MFW4A publication „Financing Africa: Through the Crisis and Beyond;
- Initiate one Making Finance Work for a Specific Country programme;
- Organize donor and stakeholder workshops/working groups;
- Additional resources required: funding for the Partnership Forum, other events and research;
- Making Finance Work for Specific Countries: the Partnership is exploring a model under which development partners work closely with country authorities to address financial sector challenges. A pilot project that involves the Ethiopian government and the AfDB is currently under way.
Experiences, Challenges, and Ways Forward
Since its establishment, the main challenges faced by MFW4A have been related primarily to ensuring transparency in donor interventions (e.g. analyzing the supply of resources for financial sector development) and to establishing a mechanism for receiving and processing recipient needs (i.e. demand analysis). The next key challenges for the Partnership will be to consolidate and promote the website as a financial sector knowledge hub and improve transparency around recipient driven needs, as expressed by the recipient countries, and to ensure that donors take a coordinated approach in addressing them.
Technical Department and Task Manager
Stefan Nalletamby, Partnership Coordinator, Governance, Economic and Financial Reforms Department
Tel: (216) 7110 2700
Partnerships and Cooperation Unit Focal Point
Veronica Giardina, Principal Cooperation Officer
Tel: (216) 7110 2519
- 26/09/2011 - The achievement of the 2011 Making Finance Work for Africa Partnership Forum
- 15/09/2011 - Launch of “Financing Africa: Through the Crisis and Beyond”
- 12/09/2011 - Fragile Countries Must Lead in Peacebuilding and Statebuilding
- 15/08/2011 - 2011 Making Finance Work for Africa Partnership Forum
- 06/06/2011 - AfDB-World Bank Study: The African Financial Sector Needs More Competition