Transcript Empowerment .(English)

Equity Bank
MFI role in achieving Vision
2030
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Structure of the presentation
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Brief background of Kenyan economy

Vision 2030 at glance
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
Role of MFI in achieving Vision 2030
Concluding remarks
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Background
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Total Area: 582,650 sq Km
Population: 34,707,817
Population Density : 60%
GDP: 6.3%
Inflation Rate: 7.4%
More than 50% of Population live in
poverty
80% of the population live in rural zones
FINANCIAL ACCESS
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19% (Formal -Regulated banks),
8%(Formal –Others SACCOs and MFIs),
35%(Infomal -Accumulated Savings and
Credit Associations)
38% ( Unbanked- no formal or informal
financial products)
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Economic scenario at glance
The economic growth has so far increased from 0.6% to 6.1%
between 2002 to 2006
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VISION
A touch, a guide, an inspiration of the future. “Crystallize focus”
VISION 2030
“A globally competitive and prosperous nation with a high standard
of life by 2030”
How: transform Kenya into an economic powerhouse with a
sustainable growth rate of over 10% by 2030 thus becoming a middle
income prosperous country.
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Building blocks for vision 2030
A globally competitive and
Prosperous nation with a high quality of life by 2030
Economic Pillar
Social Pillar
Political Pillar
To maintain a
sustained
economic
growth of 10%
p.a. over the
next 25 yrs
A just and
cohesive society
enjoying
equitable social
development in a
clean and secure
environment
An issue-based
peoplecentered, resultoriented, and
accountable
democratic
political system
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FOCUS SECTORS
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Financial
Agriculture
Tourism
ICT – Business process outsourcing (BPO)
Manufacturing
Wholesale & retail trade
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SUPPORT INVESTMENTS
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Infrastructure
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Education
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Health
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Kenya's Macroeconomic Environment
2002
2003
2004
2005
2006
32.2
33.2
34.2
35.1
36.1
0.5
2.9
5.1
5.8
6.1
408.3
451.9
474.7
544.5
652.7
15.3
16.4
16.9
16.8
Underlying Inflation (%
2.9
2.7
3.5
5.4
3.9
90 Day T-Bills (discount rate) (%)
8.4
1.4
8.3
8.1
5.7
Months of Import Coverage (Total reserves)
3.3
4.2
3.4
3.3
3.7
78.7
75.9
79.3
75.6
69.6
Population (Million)
Real GDP Growth (!%)
Per Capital Income-Current (USD)
Gross Domestic Investment (1% of GDP)
Exchange Rate (Kshs/US$)
Source: Central Bank of Kenya/Central Bureau of
Statistics
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Economic growth pillar
Envisages economic growth of over 10% p.a.
This growth will be achieved through
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Increased saving and investment across the
board
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Efficient use of existing labor force (increased
labor productivity)
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Increased and sustained growth of Micro and
Small Enterprises
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Supporting agro-businesses
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Increased access to investment funds
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The role of MFI in economic growth
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Financial institutions’ main role is financial
intermediation Financial institutions
enhances or facilitates investments through
savings or/and loans
Economic growth of 10% p.a. is achievable
if MFI become more efficient in their
financial allocation business.
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MFI’s role achieving vision 2030
The role of MFIs in achieving Vision 2030 can be
understood clearly through understanding what they
have been able to achieve in provision of financial
intermediation. The achievements can be classified in
several categories;
1.
2.
3.
4.
5.
Outreach
Accessibility
Focus client
Impact on general financial market
People empowerment
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Outreach
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MFIs have reached previously unbanked
population, enabling them to save.
The savings have enabled many people to
build capital for investment.
Increased investment results to increased job
opportunities leading to efficient use of
human capital.
The increased financial access through MFI
will be necessary in attaining Vision 2030.
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Accessibility
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Breaking geographical and literacy barriers
and taking financial services to the people.
Demystifying banking, easy access, flexible,
affordable.
Use of non conventional collateral, including
social capital, hence making credit
accessible to the majority.
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Focus clients
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Focus on segments that were hitherto ignored; MSEs.
Moving to rural areas and supporting agriculture is making
agribusinesses thrive, becoming more competitive.
Micro and small businesses success drives economic growth
of many countries and are expected to contribute
substantially in attainment of Vision 2030.
Efficient supply of funds in agricultural value chain will be
vital in attainment of Vision 2030.
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MFI’s impact to general financial market
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Revolutionalised banking, making it a
right and not a privilege.
MFI have made financial services more
affordable.
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People empowerment
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MFIs are giving people hope, awakening them to
start charting their own destiny.
MFI are giving people opportunity to build their
confidence and dignity out of the hopelessness
that results from poverty.
More and more people have started having positive
attitude about life and taking self-employment
seriously. MFI are facilitating turning their business
dreams into reality.
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MFI’s Contribution
MFI will play an important role in achieving Vision
2030 if:They improve their operational efficiency and themselves
becoming commercial entities.
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Become more innovative and be able to develop demand
driven financial products
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Increase their outreach and focus on agricultural sector
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Make their services more affordable and accessible.
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THANK YOU
Email:
[email protected]
Web site: www.equitybank.co.ke
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