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    HomeUpdatesAFD Pledges Extra $3.3M to Pan-African Digital Finance Fund

    AFD Pledges Extra $3.3M to Pan-African Digital Finance Fund

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    The Agence française de développement (AFD), France’s public development bank, has pledged an additional €3 million (USD 3.4 million) to the Africa Digital Financial Inclusion Facility (ADFI), a pan-African initiative aimed at expanding access to digital financial services across the continent. The new commitment brings AFD’s total contribution to over €5 million since the fund’s launch in 2019.

    ADFI, managed by the African Development Bank (AfDB), was co-founded by AFD, the Bill & Melinda Gates Foundation, and Luxembourg’s Ministry of Finance. Since then, additional partners, including France’s Ministry for the Economy, the Women’s Enterprise Finance Initiative (We-Fi), and India’s Ministry of Finance, have joined the effort.

    The facility supports scalable digital financial solutions — such as mobile banking, digital credit, and payment platforms — to reach underserved populations, including women, smallholder farmers, and rural entrepreneurs. According to recent data, nearly half of Africa’s adult population lacks access to formal financial services, with women disproportionately affected.

    AFD’s latest funding injection will help ADFI expand investments in digital infrastructure, policy reforms, and financial product innovation. The goal is to reduce barriers to financial access while ensuring solutions are both inclusive and sustainable.

    “Developing digital financial services is a key pathway to reach financially excluded populations in Africa,” said Audrey Brule-Françoise, head of AFD’s Financial Systems Division. “This new contribution will help scale up impactful and inclusive solutions tailored to diverse needs.”

    Mohamadou Ba, head of AfDB’s Financial Intermediation and Inclusion Division, emphasized the role of digital finance in bridging economic gaps. “Digital financial solutions are key to improving quality of life and reducing gender disparities in access to finance,” he said. “We welcome AFD’s continued support in accelerating financial inclusion across the continent.”

    Despite progress, significant hurdles remain. Weak digital infrastructure, regulatory fragmentation, and low financial literacy hinder adoption in some regions. ADFI’s strategy focuses on three core areas:

    1. Infrastructure — Expanding mobile and internet connectivity to enable digital transactions.
    2. Policy & Regulation — Advocating for harmonized financial laws to foster innovation.
    3. Product Innovation — Supporting fintech startups and gender-inclusive financial tools.

    The initiative aligns with AfDB’s broader ten-year strategy for inclusive growth and the United Nations Sustainable Development Goals (SDGs), particularly in empowering marginalized communities.

    As digital finance gains traction, experts stress the need for responsible implementation to prevent fraud and over-indebtedness. AFD and AfDB say ADFI will prioritize consumer protection while scaling solutions.

    With Africa’s digital economy projected to grow rapidly, initiatives like ADFI could play a pivotal role in ensuring financial systems benefit all — not just the urban elite. The next phase will test whether increased funding translates into tangible progress for those still locked out of the formal economy.

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