DOCSLIB.ORG

Digital Financial Services in the MENA Region Recommended Citation: Riley, Pamela, Sarah Romorini, Emma Golub, and Maggie Stokes

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Digital Financial Services in the MENA Region Recommended Citation: Riley, Pamela, Sarah Romorini, Emma Golub, and Maggie Stokes Digital Financial Services in the MENA Region Recommended citation: Riley, Pamela, Sarah Romorini, Emma Golub, and Maggie Stokes. 2020. Digital Financial Services in the MENA Region. Rockville, MD: Sustaining Health Outcomes through the Private Sector Plus Project, Abt Associates Inc. Cooperative agreement: AID-OAA-A-15-00067 Submitted to: Amy Kay, Senior Healt h Advisor, Bureau for the Middle East, USAID Elaine Menotti, AOR, Service Delivery Improvement Division, Office of Population, USAID About SHOPS Plus: Sustaining Health Outcomes through the Private Sector (SHOPS) Plus is USAID’s flagship initiative in private sector health. eThe proj ct seeks to harness the full potential of the private sector and catalyze public-private engagement to improve health outcomes in family planning, HIV/AIDS, maternal and child health, and other health areas. SHOPS Plus supports the achievement of US government health priorities and improves the equity and quality of the total health system. Cover photo: Recep Büyükgüzel Abt Associates Inc. 6130 Executive Boulevard Rockville, MD 20852 USA Tel: +1.301.347.5000 abtassociates.com American College of Nurse-Midwives | Avenir Health Broad Branch Associates | Banyan Global | Insight Health Advisors Iris Group | Population Services International | William Davidson Institute at the University of Michigan ii Digital Financial Services in the MENA Region This report is made possible by the support of the American people through the United States Agency for International Development (USAID).The contents of the report are the sole responsibility of Abt Associates and do not necessarily reflect the view s of USAID or the United States government. iii Contents Contents ............................................................................................................................... iv Tables ................................................................................................................................ vi Figures ............................................................................................................................... vii Acronyms ........................................................................................................................... viii Executive Summary............................................................................................................. ix Background ........................................................................................................................... 1 Introduction................................................................................................................ ......... 1 Objectives ........................................................................................................................ 1 Methodology ..................................................................................................................... 2 Glossary of terms .............................................................................................................. 2 Global context ....................................................................................................................3 What is DFS?................................................................................................ 3 Why DFS matter ........................................................................................... 3 Global initiatives to promote financial inclusion............................................... 4 Foundational regulations ............................................................................... 5 Regional findings.................................................................................................................. 6 Financial account ownership.............................................................................................. 6 Mobile subscribers ............................................................................................................ 8 Use of DFS ....................................................................................................................... 9 Gender disparity...................................................................................................... 10 Consumer mistrust .................................................................................................. 12 Lack of perceived value ........................................................................................... 12 Findings by topic................................................................................................... ............. 13 Technical assistance from global partners ....................................................................... 13 DFS regulatory reform............................................................................. ........................ 14 Political commitment ................................................................................... 15 e-Payment authorization and infrastructure .................................................. 15 Know-your-customer rules ........................................................................... 16 Regulatory “sandbox” to test new approaches.............................................. 17 DFS supply ..................................................................................................................... 17 DFS provision ............................................................................................. 18 Government applications ............................................................................. 19 DFS access points..................................................................................... ..................... 19 iv DFS applications...................................................................................................... ........ 20 DFS and refugees............................................... ..................................................... 20 DFS and microfinance institutions............................................................................ 22 DFS and remittances............................................................................................... 23 DFS in the health sector .................................................................................................. 24 Digital health........................................................................................................... 24 Digital IDs ................................................................................................................ 26 Digital finance in health ........................................................................................... 26 DFS and health insurance ....................................................................................... 27 Case study in Egypt: Democrance democratizes access to life and health insurance .......................................................................................................... 29 Country profiles ............................................................................................................ 31 Algeria ................................................................................................................. 32 Egypt ................................................................................................................. 34 Iraq ................................................................................................................. 37 Jordan ................................................................................................................. 40 Lebanon ................................................................................................................. 43 Libya ................................................................................................................. 45 Morocco ................................................................................................................. 47 Syria ................................................................................................................. 49 Tunisia ................................................................................................................. 51 West Bank & Gaza ....................................................................................................... 53 Yemen ................................................................................................................. 55 Implications and recommendations............................................................................. 57 Conclusion........................................................................................................................... 60 Annex. List of Key Informants .............................................................................................61 Bibliography ........................................................................................................................ 62 v Tables Table 1: DFS regulatory status by topic.................................................................................. 14 Table 2: DFS regulatory status by country.............................................................................. 15 vi Figures Figure 1: Percent of adult population (ages 15+) that does not own a financial account by region, 2017 ...................................................................................................................... 7 Figure 2: Percent of adult population (ages 15+)
Load more

Recommended publications
  • Air Pollution and Other Risk Factors Might Buffer COVID-19 Severity in Mozambique
    Coronavirus Pandemic Air pollution and other risk factors might buffer COVID-19 severity in Mozambique José Sumbana1,2, Jahit Sacarlal3, Salvatore Rubino2 1 Department of Biological Sciences, Eduardo Mondlane University, Maputo, Mozambique 2 Department of Biomedical Sciences, University of Sassari, Sassari, Italy 3 Department of Microbiology, Eduardo Mondlane University, Maputo, Mozambique Abstract Mozambique is located on the East Coast of Africa and was one of the last countries affected by COVID-19. The first case was reported on 22 March 2020 and since then the cases have increased gradually as they have in other countries worldwide. Environmental and population characteristics have been analyzed worldwide to understand their possible association with COVID-19. This article seeks to highlight the evolution and the possible contribution of risk factors for COVID-19 severity according to the available data in Mozambique. The available data highlight that COVID-19 severity can be magnified mainly by hypertension, obesity, cancer, asthma, HIV/SIDA and malnutrition conditions, and buffered by age (youthful population). Due to COVID-19 epidemic evolution, particularly in Cabo Delgado, there is the need to increase laboratory diagnosis capacity and monitor compliance of preventive measures. Particular attention should be given to Cabo Delgado, including its isolation from other provinces, to overcome local transmission and the spread of SARS-CoV-2. Key words: SARS-CoV-2; risk factors; COVID-19 severity; Mozambique. J Infect Dev Ctries 2020; 14(9):994-1000. doi:10.3855/jidc.13057 (Received 15 May 2020 – Accepted 11 July 2020) Copyright © 2020 Sumbana et al. This is an open-access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
    [Show full text]
  • Enabling Commerce in the World's Most Under Penetrated Payments
    Enabling Commerce In The World’s Most Under Penetrated Payments Market Network International Holdings Plc Annual Report and Accounts 2019 Network International Holdings Plc 01 Annual Report and Accounts 2019 We are Network International, the leading payment solutions provider in the Middle East and Africa. Our innovative solutions drive revenue and profitability for our customers. To read our Annual Report online go to www.network.ae Market opportunity Under penetrated payments markets R Read more on page 10 Business model A unique We are enabling and leading the transition from cash proposition to digital payments across the Middle East and Africa, one of the fastest growing payments markets in the world. R Read more on page 14 Strategic Report Governance Financial Statements 2019 Highlights 02 Corporate Governance Report 72 Independent Auditor’s Report 138 Our Industry 04 Board of Directors 74 Consolidated Statement Strategy in action Our Business at a Glance 06 Executive Management Team 76 of Financial Position 144 Chairman’s Statement 08 Audit and Risk Committee Report 88 Consolidated Statement of Profit or Loss 145 Market Overview 10 Nomination Committee Report 100 Market leading Consolidated Statement of Our Track Record 12 Directors’ Remuneration Report 102 other Comprehensive Income 146 Our Business Model 14 Directors’ Report 130 Consolidated Statement technology Chief Executive Officer’s Review 16 Going Concern Statement of Changes in Equity 147 Our Strategic Framework 20 and Viability Statement 136 Group Statement of Cash Flows
    [Show full text]
  • Swiss Cooperation Strategy Egypt 2017–2020 Abbreviations
    Swiss Cooperation Strategy Egypt 2017–2020 Abbreviations AFD Agence Française de Développement KfW Kreditanstalt für Wiederaufbau AfDB African Development Bank MERV Monitoring system for development- ARIs Aggregated Report Indicators to report relevant changes on the Federal Dispatch 2017-2020 for MoIC Ministry of International Cooperation International Cooperation MoSS Ministry of Social Solidarity CBM Confidence-building measure MSMEs Micro, small and medium enterprises CS Cooperation Strategy NGOs Non-governmental organisations CSOs Civil society organisations ODA Official Development Assistance CSPM Conflict-sensitive programme OECD Organisation for Economic Cooperation management and Development DIL Directorate for International Law OIC Office for International Cooperation / DPG Development Partners Group Embassy of Switzerland in Egypt EBRD European Bank for Reconstruction and DP Directorate of Political Affairs Development SDC Swiss Agency for Development and EIB European Investment Bank Cooperation EU European Union SDGs Sustainable Development Goals EUTF EU Emergency Trust Fund for stability SDS Sustainable Development Strategy and addressing root causes of irregular SECO State Secretariat for Economic Affairs migration and displaced persons in Africa SEM State Secretariat for Migration FDFA Swiss Federal Department of Foreign SNAP Swiss North Africa Programme 2011-2016 Affairs TVET Technical Vocational Education and GoE Government of Egypt Training HSD Human Security Division UMC Unaccompanied minors and children IFC International
    [Show full text]
  • Benefits of Open Payment Systems and the Role of Interchange
    Benefits of Open Payment Systems and the Role of Interchange U.S. Version Delivering value through payment alternatives At MasterCard Worldwide, we take great pride in the many ways we advance com- merce. From the millions of consumers and businesses around the world who rely on our cards on a daily basis, to the retailers who accept them and institutions that issue them, it’s clear that the products and services we offer deliver extraordinary value. With demand for fast, convenient and safe payment alternatives rapidly accelerating, commerce is increasingly driven by blips on a screen, numbers punched on a keyboard, cards swiped through electronic readers and chip-activated cell phones. In fact, our products and services are so ingrained in everyday life that the value we deliver is all too often taken for granted. Perhaps the easiest way to grasp the true value of electronic payments is to envision a world without them. Clearly, if electronic payments came to a sudden halt, many facets of commerce—travel, trade and the Internet just to name a few—would face dire consequences. While cash and checks still have their place, they lack the speed, convenience and safety required by consumers, businesses and governments in today’s fast-paced, ever-shrinking world. To be sure, the widespread use of electronic payments and the sophisticated networks that seamlessly link millions of consumers, merchants and financial institutions around the globe are at the heart of commerce. Their importance is clear not only in industrialized nations, but in emerging markets as well, where we are making inroads in building a bridge to the modern economy.
    [Show full text]
  • Financialreportpdf2020.Pdf
    Finance chap 1.qxp_Layout 1 1/16/20 2:32 PM Page 1 Finance chap 1.qxp_Layout 1 1/16/20 2:32 PM Page 2 Industry Insight 4 MACROECONOMIC Set to soar: Momentum EGYPT’S FINANCE SECTOR acked by strong legislative reforms and an improving macroeconomy, Egypt’s financial sector holds a treasure chest of opportunities. The latest edition of BAmCham Egypt’s Financial Services Industry Insight looks 13 INSURANCE Still Untapped at all aspects of the sector from banks to insurance to the capital markets, and more. The issue starts with a look at the macroeconomic progress of the past three years, with the latest data from Egypt’s economic turnaround, an assessment of potential challenges and the reform plan going forward. This is followed by a chapter on the insurance sector’s growing potential and a BANKS BREWING 19 third chapter covering the key drivers behind the banking Business sector’s expanding investment. Chapters four and five offer updates on the closely related topics of financial inclusion and fintech, detailing the role of retail lending, e-banking and non-banking channels in drawing more consumers and SMEs into the financial system. Finally, chapter six has the latest on trends in the stock market, with a special look at 26 CRACKING private equity and Egypt’s new sovereign wealth fund. Consumer Credit Khaled Sewelam Director, Research and Publications FINTECH IS 34 Flourishing Amira Sheha Research Manager Fadila Noureldin Author and Senior Economic Researcher Kate Durham Editor and Head of Corporate Publications Nessim N. Hanna CAPITAL Senior Art Director 39 Crunch Emy Emile Senior Graphic Designer Verina Maher Graphic Designer Amany Kassem Advertising & Business Development Director Publications/Research EXPLOITING Lamia Seleit Sovereign Capital 45 Advertising Specialist Rowan Maamoun Advertising & Ad Traffic Coordinator Hani Elias Production Supervisor ©2019 AmCham Egypt’s Business Studies & Analysis Center.
    [Show full text]
  • Crop Prospects and Food Situation #3, September 2020
    #3 SEPTEMBER 2020 ISSN 2707-2223 CROP PROSPECTS and Quarterly Global Report FOOD SITUATION COUNTRIES REQUIRING EXTERNAL ASSISTANCE FOR FOOD FAO assesses that globally 45 countries, including 34 in Africa, are in need of external assistance for food. The effects of the COVID-19 pandemic, particularly through the loss of income and jobs related to Countries in need of containment measures, have external assistance severely aggravated global food security conditions, as well as for food increasing the number of people in need of assistance. Conflicts and weather shocks remained critical factors affecting the current high levels of severe food 45 insecurity. REGIONAL HIGHLIGHTS Asia 1.7 AFRICA Larger harvests are estimated in Southern Africa and East Africa, Africa 2.0 despite floods and outbreaks of desert locusts; although pest damages have Central America and the Caribbean 2.9 been largely contained, serious concerns South America 2.0 remain in some countries. Adverse WORLD weather reduced wheat outputs in North America 7.7 Cereal production 2020 North African countries, while cereal Europe -3.9 production in West Africa is foreseen at over 2019 a slightly above-average level. Protracted Oceania 45.6 (yearly percentage change) conflicts continue to limit growth in agricultural production in Central Africa. World 2.2 ASIA Widespread floods caused damage in several countries in Far East Asia, but rains across the subregion were + 2.2% also beneficial for paddy production and the output in 2020 is forecast (million tonnes) at a record high. In the Near East, reflecting improved security conditions 500 and favourable weather, production upturns were estimated in the Syrian ASIA 495 496 Arab Republic and Iraq in 2020.
    [Show full text]
  • View Annual Report
    To Our Stockholders, In 2008, we embraced a tremendous amount of fundamental change against the backdrop of a deteriorating external market and economy. Even with the challenges, we exited the year a stronger company and remain a leader in e-commerce, payments and Internet voice communications. Our performance for the full year not only reflects the strength of our portfolio, but also the operating discipline, strategic clarity and focus with which our management team is leading the company going forward. Financially, the company had a good year, marked by strong revenue growth, stronger EPS growth and excellent free cash flow. Despite the extremely challenging economic environment in 2008 – including a slowdown in global e-commerce, a strengthening dollar, and declining interest rates – we delivered $8.5 billion in revenues, an 11 percent increase from the prior year, and $1.36 of diluted EPS. We also delivered a solid operating margin of 24 percent. The size of the eBay marketplace continues to be the largest in the world with nearly $60 billion of gross merchandise volume (the total value of goods sold in all of our Marketplaces) in 2008. PayPal continues to experience strong growth, both on eBay and across e-commerce, and Skype had a great year, growing both revenues and user base. In addition, we strengthened our portfolio by investing in the growth of our emerging businesses and through key acquisitions. In 2008, advertising, global classifieds and StubHub, the leading online tickets marketplace, all gained momentum in terms of revenues. Key acquisitions we made during the year will help us build on our strengths.
    [Show full text]
  • Humanitarian Cash Transfers and Financial Inclusion: Lessons from Jordan and Lebanon.” Working Paper
    HUMANITARIAN CASH TRANSFERS AND FINANCIAL INCLUSION Lessons from Jordan and Lebanon April 2020 Nadine Chehade, Peter McConaghy, and Chrissy Martin Meier Acknowledgments This paper is the result of extensive research combining a literature review, multiple in-country visits, and desk-based analytical work. Data for the paper leveraged work led by Khurram Sikander and Tricia Cuna Weaver at Paysys Global, with support from Karim Jindani. It has been reviewed by Gregory C. Chen (Lead Financial Sector Specialist, CGAP), Matthew Soursourian and Yasmin Bin Human (Financial Sector Specialists, CGAP), and Karol Karpinski (Financial Sector Specialist, FCI). The team is also grateful for the inputs provided on earlier versions by Sophie Tholstrup and Julie Lawson McDowall at the Cash Learning Partnership (CaLP) and by Antoine Navarro (CGAP consultant). The research was supported by the State and Peace- Building Trust Fund, the World Bank Group’s largest global trust fund focused on supporting countries impacted by fragility, conflict, and violence. Consultative Group to Assist the Poor 1818 H Street, NW, MSN F3K-306 Washington, DC 20433 USA Internet: www.cgap.org Email: [email protected] Telephone: +1 202 473 9594 Cover photo by Tareq Khlaf, 2014 CGAP Photo Contest. © CGAP/World Bank, 2020. RIGHTS AND PERMISSIONS This work is available under the Creative Commons Attribution 4.0 International Public License (https://creativecommons.org/licenses/by/4.0/). Under the Creative Commons Attribution license, you are free to copy, distribute, transmit, and adapt this work, including for commercial purposes, under the terms of this license. Attribution—Cite the work as follows: Chehade, Nadine, Peter McConaghy, and Chrissy Martin Meier.
    [Show full text]
  • How Prepaid Cards Can Help Banks to Grow Despite the Pandemic
    How Cards Prepaid prepaid cards can help banks to grow despite the pandemic 1A multi-case study Despite the pandemic, the prepaid cards market is showing positive dynamics. In 2020, the sector is estimated to grow Prepaid Cards Prepaid half as fast as last year, and in the next six years, it will achieve an annual growth rate of 11.69%. This pace almost equals to what was forecast before the pandemic. The market concentration is relatively low, with three top issuers of prepaid cards taking no more than 13.5% of the global market. Some B2B customers appear to be the most promising for adopting new prepaid products. Projects targeting government, retail, and corporate segments are expected to enjoy an even higher growth rate than issuance of general-purpose prepaid cards. Transport-related projects seem attractive as well. This multi-case study explores how issuing banks and processors can make successful prepaid products for governments, transport authorities, retailers, and corporates. What technologies and business advantages are needed to launch viable and profitable solutions? Here is an overview of best practices. To skip to a particular chapter, click on its name on the next page. 2 Contents Prepaid Cards Prepaid Prepaid Cards Prepaid Deliver government assistance safely Leave out irrelevant features and communicate and efficiently with prepaid cards ...........................4 the prepaid card’s value clearly ...............................................13 Allow beneficiaries to receive aid with no delay, Help businesses to deliver payrolls no charge, and less health risk ................................................. 4 and control corporate expenses in real time .... 14 Provide governments with full control of disbursements to reach social objectives ........................................................
    [Show full text]
  • 2021 Prime Time for Real-Time Report from ACI Worldwide And
    March 2021 Prime Time For Real-Time Contents Welcome 3 Country Insights 8 Foreword by Jeremy Wilmot 3 North America 8 Introduction 3 Asia 12 Methodology 3 Europe 24 Middle East, Africa and South Asia 46 Global Real-Time Pacific 56 Payments Adoption 4 Latin America 60 Thematic Insights 5 Glossary 68 Request to Pay Couples Convenience with the Control that Consumers Demand 5 The Acquiring Outlook 5 The Impact of COVID-19 on Real-Time Payments 6 Payment Networks 6 Consumer Payments Modernization 7 2 Prime Time For Real-Time 2021 Welcome Foreword Spurred by a year of unprecedented disruption, 2020 saw real-time payments grow larger—in terms of both volumes and values—and faster than anyone could have anticipated. Changes to business models and consumer behavior, prompted by the COVID-19 pandemic, have compressed many years’ worth of transformation and digitization into the space of several months. More people and more businesses around the world have access to real-time payments in more forms than ever before. Real-time payments have been truly democratized, several years earlier than previously expected. Central infrastructures were already making swift For consumers, low-value real-time payments mean Regardless of whether real-time schemes are initially progress towards this goal before the pandemic immediate funds availability when sending and conceived to cater to consumer or business needs, intervened, having established and enhanced real- receiving money. For merchants or billers, it can mean the global picture is one in which heavily localized use time rails at record pace. But now, in response to instant confirmation, settlement finality and real-time cases are “the last mile” in the journey to successfully COVID’s unique challenges, the pace has increased information about the payment.
    [Show full text]
  • American Express Company Earnings Conference Call Q3'12
    American Express Company Financial Community Meeting Kenneth Chenault Chairman and Chief Executive Officer Dan Schulman Group President, Enterprise Growth John Hayes Executive Vice President and Chief Marketing Officer August 8, 2013 Agenda Year-to-Date Financial and Business Performance Growth Opportunities Enterprise Growth Update The Brand Q&A 2 Financial Performance $ in billions; except per share amounts Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Total Revenues Net of Interest $8.0 $7.9 $8.1 $7.9 $8.2 Expense Growth vs. Prior Year 5% 4% 5% 4% 4% FX Adjusted Growth vs. Prior Year† 7% 5% 5% 5% 4% Net Income $1.3 $1.3 $0.6 $1.3 $1.4 Diluted EPS* $1.15 $1.09 $0.56 $1.15 $1.27 Adjusted Diluted EPS** $1.09 Adjusted Growth vs. Prior Year** 7% 6% 8%** 7% 10% Return on Average Equity 27% 26% 23% 23% 24% *Attributable to common shareholders. Represents net income less earnings allocated to participating share awards and other items of $14MM in Q2’12, $14MM in Q3’12, $7MM in Q4’12, $11MM in Q1’13 and $13MM in Q2’13. **Adjusted diluted earnings per share and the adjusted growth rate, non-GAAP measures, are calculated by excluding from diluted EPS the Q4’12 restructuring charges, Membership Rewards expense and cardmember reimbursements. See Annex 1 for a breakdown of the adjustments and a reconciliation. †This is a non-GAAP measure. FX adjusted information assumes a constant exchange rate between the periods being compared for purposes of currency translation into U.S.
    [Show full text]
  • Africa and Covid-19
    POLICY BRIEF # 03, 2021 Africa and Covid- 19: Where Do We Go from Here? Executive Summary Africa was one of the last regions to be hit by the pandemic; it gave leaders and regional organisations a head start in setting up strategies to mitigate the spread of Covid-19. Nonetheless, the efforts must not stop there. Initially, it seemed like African countries have been spared the Covid-19 devastation that some experts predicted. Although statistics show that Africa’s death toll is lower than other regions, concerns have begun to arise as infections multiply and newer variants spread. Countries are experiencing severe second and third waves of the pandemic, with the most affected being Uganda, the Democratic Republic of Congo, Namibia, Zambia, Rwanda, and Tunisia. Unfortunately, global vaccine inequity has placed Africa behind in the vaccine rollouts. Once the outbreak subsides, African leaders must invest in research and policy responses that mitigate future outbreaks and deliver high-quality healthcare to Africans in secure environments. We suggest that regardless of Africa’s relative success in managing the virus, moving ahead, the continent needs not just a collection of policies but also a strategy that integrates emergency disease outbreaks into continental structures. Written by DR. OHENEBA A. BOATENG DR. LYNDA CHINENYE IROULO © United Nations University Institute on Comparative Regional Integration Studies, 2021 The views expressed in this publication are those of the author and do not necessarily reflect the view of the United Nations University Introduction like the United States, Canada, and the United Kingdom have procured enough vaccines for The first case of Covid-19 in Africa was reported their populations, African countries have on 14 February 2020 in Egypt (Egypt Today, enough for merely half of their population.
    [Show full text]