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Draft Financial Sector Development Policy and Strategy 2014-2019 – Revised
The financial sector—the lifeblood of the continent’s real economy—has had an important role in Africa’s recent progress. And it is vital to achieving inclusive growth and the transition to green growth, the two strategic objectives of the Strategy for 2013–2022 of the African Development Bank Group (the Bank Group). But the absence of deep, efficient financial markets constrains economic growth: limited access to finance lowers welfare and hinders the alleviation of poverty and the emergence of a middle class, while implementing monetary policy in a context of shallow markets is costly and inefficient. The aim has to be well-functioning financial systems that mobilize and allocate savings, supply the credit needs of economic agents, and allocate resources more efficiently while reducing intermediation costs.