CBL: Draft Financial Inclusion Strategy Under Review

Most Liberians still aren't benefiting from the new financial products and services entering the market, a former Central Bank of Liberia governor has said, as the bank works to finalize a strategy to bring people in the informal economy into the formal financial system. Milton Weeks, a consultant on the draft National Financial Inclusion and Education Strategy, spoke during a two-day validation exercise at which representatives of the financial sector and other institutions reviewed the document and recommended changes before it is finalized. "We keep saying we're making progress. Yeah, we're bringing in new products. We're bringing in new services. But the majority of the people are not benefiting from them," Weeks said. The draft seeks to push financial inclusion beyond mobile money, focusing on access to credit, savings, insurance and digital financial services, as well as the knowledge people need to use them. Follow us on WhatsApp | LinkedIn for the latest headlines Weeks said that focus matters because most economic activity in Liberia happens outside the formal sector. "The majority of the Liberian economy is really in the informal sector," he said. A mobile money account alone, he said, does not amount to meaningful inclusion. Liberians should also be able to borrow, save and buy insurance as part of a wider financial services system. Lillian Best, a former central banker and co-lead of the financial inclusion pillar of the African Women Leaders Network, said some of the interventions identified during the exercise would require legislative approval and judicial reforms, while others would need government budgeting and private-sector investment. "It wasn't just a validation workshop," Best said. "Really, it was intensive, very lively, and we were actively strategizing." She said participants mapped out interventions, the institutions that could carry them out and the dependencies that must be resolved for the strategy to meet its targets. Among the problem areas were the National Identification Registry, business registration and credit-reference systems. Best said Liberia needs a cohesive identification system that can be integrated with commercial banks and other institutions. She said the business registry should be decentralized so that businesses can register more easily and enter the formal credit system. Technology, coordination, cooperation and liquidity management, she said, will also be key. Atty. Andrew A. Tellewoyan, officer in charge of the CBL's Development Finance Section, said the ability to read and write does not necessarily mean a person can manage money well. He said the views and recommendations submitted during the validation would shape the final document. The draft links inclusion with education, aiming to improve both people's access to financial services and their ability to use them. Best said that responsibility should not rest with the Central Bank or commercial banks alone. She called on commercial banks to teach customers and borrowers about loan management, repayment and cash-flow management, and urged that financial literacy be added to the K-12 curriculum. Nimely Sayeh, president of the National Association of Foreign Exchange Bureaus of Liberia, said the country needs a clear roadmap for digital finance. "Liberia is way behind when it comes to digital financing," Sayeh said. He said participants discussed issues affecting digital financial services, including the role of agents and financial institutions. Sayeh said he would carry the financial inclusion message to the foreign exchange sector, adding that access to financial services should not depend on a person's level of education. He called on the government to widen Liberians' access to digital financial services, saying greater digitalization could boost economic activity. Get the latest in African news delivered straight to your inbox By submitting above, you agree to our privacy policy . We need to confirm your email address.