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 The African Economic Research Consortium (AERC), with support from the Bill and Melinda Gates Foundation (BMGF), convened a Regional Policy Forum focusing on financial inclusion and market development in the East African Community (EAC). Hosted at the Four Points by Sheraton in Dar es Salaam, Tanzania on the 28th October 2024, the forum gathered prominent figures from financial institutions, including representatives from the Central Bank of Tanzania, alongside policymakers, private sector leaders, and researchers.

The forum opened with remarks from Prof. Victor Murinde, Executive Director of AERC, who highlighted the significance of digital financial services and market development in achieving inclusive growth. Prof. Murinde outlined AERC’s commitment to enhancing evidence-based policymaking in Africa through initiatives like the Delivering Digital Financial Services for the Poor (DFSP) project. “This research initiative addresses key challenges such as financial inclusion, market development, and the interoperability of digital payment systems, all of which are vital for advancing the economic landscape in East Africa,” he said. The project, supported by BMGF, has produced over 20 research papers covering essential themes, including competition and consumer protection, gender dimensions in digital finance, and strengthening institutional capacities.

In his opening address, the Guest of Honor, Hon. Dr. Abdullah Makame, MP for the East Africa Legislative Assembly (EALA), underscored the necessity of bridging both financial and digital divides within the region. He noted the broader implications of financial exclusion beyond limited access to credit, emphasizing that AERC’s research provides valuable insights to guide regional policymakers. “This project equips us with critical evidence to develop policies that make financial services accessible to all, thus setting the stage for a more prosperous East Africa,” Dr. Makame stated as he formally opened the forum.

The forum featured thematic presentations by industry experts. David Cracknell, Managing Director of First Principles Consulting, discussed policy options to advance digital financial inclusion and enhance the ecosystem’s interoperability. Cracknell stressed the need for cohesive regulations to support both cross-border digital transactions and consumer protections.

The forum included various presentations providing in-depth analyses in areas such as; Institutional Capacity Strengthening for payment system interoperability, Consumer Protection in Digital Payments and Gender Inclusion in Digital Financial Services. A policy roundtable discussion also took place allowing participants to explore policy strategies that could enhance financial inclusion and economic integration within the EAC. Moderated by Dr. George Kararach of the African Development Bank, the session featured panelists from various financial institutions who addressed the importance of digital identity (E-ID) systems, policies for rural access, and cross-border interoperability in digital financial services.

In his closing remarks, Prof. Murinde emphasized that, while the DFSP project concludes this month, the journey to understanding and expanding digital finance in Africa has only begun. He highlighted the often-overlooked issue of language accessibility within digital finance, noting, “Kenya alone has over 50 local dialects. If digital financial products fail to account for linguistic diversity, we risk creating new barriers to access.” Prof. Murinde encouraged ongoing research into language and cultural factors that affect digital finance access, stressing that the exploration of digital financial services across Africa remains a vast, untapped field.

He thanked the BMGF for their support and acknowledged the forum’s participants, whose insights and expertise contributed to a robust dialogue on advancing digital finance. “Today’s discussions set the groundwork for future policy developments and practical innovations in financial inclusion across East Africa,” he concluded.