المعرفة

This paper provides an overview of concepts, issues and research on the relationship between financial inclusion and inclusive rural transformation.

It demonstrates how changing demand for financial services, innovations in rural finance, and different investment strategies affect the interplay of supply and demand.

This paper analyses how different types of social protection interventions affect rural livelihoods. It examines how these interventions can help rural transformation by increasing productivity and asks how they can influence inclusiveness.

Using country-level evidence, it suggests that the effectiveness of social protection depends upon specific contexts and combinations of interventions, and asks what this means for building policy. 

During the period covered by the project, the landscape of global microfinance was deeply modified and “the game has changed”. On the one hand, the saturation of the market has led to over-indebtedness of very poor clients, scandals and systemic crises that have swept the whole sector in some prominent countries. On the other hand, it has been difficult for the industry to demonstrate tangible impact and, therefore, show that it has delivered against its promises of lifting hundreds of millions of very poor people out of poverty.

In this challenging context, the project aimed to help unlock the economic potential in sub-Saharan Africa, by promoting the growth of existing financial intermediaries that serve rural areas (rural financial institutions, RFIs) so that local entrepreneurs could take advantage of new opportunities to be more productive and more competitive, and improve their living conditions sustainably.