2022 Trends in International Funding for Financial Inclusion

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This focus note outlines the trends in international funding for financial inclusion, reporting that funders committed $74 billion in 2022. This amount represents an 8% increase from the previous year, indicating a recovery from the disruptions caused by the COVID-19 pandemic. Development finance institutions (DFIs) spearheaded this growth, continuing to dominate the public funding landscape. Now, half of all public funding is issued as debt to financial service providers, signifying a shift towards more investable opportunities within the sector. While Sub-Saharan Africa remained the primary recipient of funds, Latin America and the Caribbean experienced significant increases, nearly matching the funding levels of Sub-Saharan Africa due to ongoing economic recovery efforts.

Additionally, the report highlights a strategic shift in funding priorities, with an increasing integration of climate objectives into financial inclusion programming. In 2022, 14% of financial inclusion projects included a green or climate theme, more than double the proportion seen in 2020. Moreover, over a third of the projects now focus on women’s financial inclusion, an essential area considering the disproportionate impact of climate change on women. This growing emphasis on environmental sustainability and gender equity marks a significant evolution in funders’ strategies as they aim to address global challenges through more targeted and impactful financial inclusion efforts.

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