Visa and the African Confederation of Co-operative Savings and Credit Associations (ACCOSCA) have teamed up to launch a project to improve financial access in Kenya and Tanzania, titled “Financial Inclusion in Kenya and Tanzania (FIKT)”.
FIKT is expected to build on the network that Visa currently possesses while leveraging the strength that the Savings and Credit Cooperative Organization (SACCO) has amassed in Africa.
The FIKT project will provide affordable financial products and services to the targeted demographics.
It will also boost the capacity of participating cooperative societies, while taking them several steps closer to financial inclusion.
According to reports, there is a progressive decline in the percentage of unbanked people in the project’s target countries. In Tanzania, the number of people who do not have access to formal financial services has decreased over the last five years.
Similarly, from 2014 till now, the proportion of Kenyans with banking accounts has shot up and is expected to rise even further.
Following the project’s launch, George Ombado, ACCOSCA Executive Director, emphasized the organization’s commitment to promoting economic and entrepreneurial growth, in a way that allows vulnerable communities to participate without the fear of financial vulnerabilities.
Eva-Ngigi-Sarwari, Visa Kenya Country Manager, reiterated the importance of financial education and digital payment adoption for financial inclusion, as the project also seeks to raise awareness of formal financial services through campaigns and financial literacy programmes.
“A blend of financial education and the uptake of digital payments holds the potential to rapidly advance financial inclusion and economic growth for MSMEs in Kenya and Tanzania,” the manager said.
