MICROCAPITAL BRIEF: Solomon Islands Launches 3rd National Financial Inclusion Strategy

Prime Minister Manasseb Sogavare of the Solomon Islands recently announced the launch of the nation’s third National Financial Inclusion Strategy, which covers the years 2021 to 2025. The strategy was developed by the Central Bank of Solomon Islands and is partially funded by the Australian government.

As part of the strategy, the government of the Solomon Islands is using the Inclusive Digital Economy Scorecard (IDES), a tool developed by the UN Capital Development Fund (UNCDF). IDES helps nations track their economies’ digital transformations by identifying limiting factors, such as lack of nearby financial institutions and high minimum balance requirements, and suggesting actions that public and private stakeholders can take to overcome those barriers.

Prime Minister Sogavare said, “the National Financial Inclusion Strategy is an important roadmap to improve financial access to all Solomon Islanders. It is very supportive of enhancing the economic livelihoods of women and children.” He also argued that the strategy and IDES will hold the government accountable in its efforts to conduct research that leads to the improvement of the nation’s policies addressing the needs of micro-, small and medium-sized enterprises (MSMEs) as well as women, the elderly, people with disabilities and other marginalized groups. In addition to these target populations, the strategy is meant to help youth and people in rural areas develop into “fully engaged participants in the formal financial sector,” including in digital finance, allowing them to build resilience and motivation. The action steps of the strategy include improving data collection, updating policies, developing infrastructure and harnessing partnerships to boost financial literacy.

Established in 1996 and headquartered in the US city of New York, UNCDF endeavors to create opportunities for poor people and their businesses by increasing access to microfinance and other forms of investment capital. The organization operates in 47 countries in Africa, Asia and the Pacific with a particular commitment to countries emerging from crises. For 2019, UNCDF had a budget of USD 63 million and supported initiatives providing financial services to 3 million unbanked and underbanked clients.

By Sophie Fiala, Research Associate

Sources and Additional Resources

UNCDF press release
https://www.uncdf.org/article/6713/solomon-islands-launches-third-national-financial-inclusion-strategy

UNCDF homepage
https://www.uncdf.org/

Central Bank of Solomon Islands homepage
http://www.cbsi.com.sb/

IDES webpage
https://ides.uncdf.org/

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