A review of our inclusive finance activities over the past four years

2021 marked the fourth and final year of ADA’s strategic plan which had been initiated in 2018. Throughout this period, ADA supported microfinance institutions (MFIs) in providing financial services (mainly agricultural loans and insurance products) to their target populations.

Over the last four years, ADA supported over 600 MFIs, 16 professional microfinance associations and networks plus around 50 other types of organisations in accessing finance and in developing and diversifying their services. In addition, ADA helped them to strengthen their governance and management structures as well as their project management capacities. 

Many of them also received support for their digital transformation, with a view to providing digital solutions to their clients. ADA also worked with new types of stakeholders to address people’s needs in a more targeted and impactful manner. In this respect, it provided these stakeholders with more in-depth and individualised support than before. Thanks to this extensive support, the number of beneficiaries of financial services increased from 62 000 in 2018 to 160 000 in 2021. 40 000 people benefited from non-financial services in 2021 compared to just 2 600 in 2018. 

On a broader scale, ADA also contributed to improving the regulatory conditions for financial inclusion in five countries. Finally, ADA made the inclusive finance sector more accountable to its clients through client protection initiatives.

The lessons learnt during the period from 2018 to 2021 laid the groundwork for our current approach. Inclusive finance should not be an end in itself but should instead be measured in terms of impact. This awareness led ADA to define its current objective of leveraging inclusive finance to improve the living conditions of vulnerable households, young entrepreneurs and smallholder farmers.