In a press conference held today at the World Economic Forum Africa 2016, the Rwandan government announced a collaboration with MasterCard to fast-track the country’s move to include 90 percent of its citizens in the financial mainstream, as set out in its ‘Vision 2020’ strategy.
In a Memorandum of Understanding (MoU) signed by the CEO, Rwanda Development Board and Cabinet Member, Francis Gatare, and Raghu Malhotra, President of Middle East and Africa for MasterCard, Rwanda will promote the move to a cashless economy by collaborating on numerous initiatives.
“We are confident that Rwanda’s partnership with MasterCard will be beneficial to the country and its citizens as we are implementing our vision of becoming a knowledge-based service-oriented economy. I believe this can only be achieved as we embrace the fourth industrial revolution,” said Gatare.
Rising from the ashes of a tragic genocide two decades ago, Rwanda has transformed and re-positioned itself to become one of the most competitive economies in East Africa. Not only will this development help reduce the amount of cash moved about, it will drive financial inclusion to new heights as bank customers will have greater convenience and access to banking services and credit, while companies will have better access to capital. Some of the solutions include; the digitisation of school fees and national healthcare claim payments, providing an online payment gateway for Rwanda Online, contributing to the creation of a common mobile banking platform and adding to the effective management of spending activities across borders.
Malhotra remarked that the government of Rwanda shares the commitment of MasterCard to realising a world beyond cash. “Our global reach and local experience makes MasterCard a perfect partner to help Rwanda meet its Vision 2020 strategy. Rwanda is a key market in East Africa for MasterCard and today’s announcement marks an important milestone in driving financial inclusion, not just in the country but in the region and Africa as a whole,” he said.
According to the World Bank’s Global Findex 2014, two billion people, globally, do not have access to formal financial services. In Rwanda, 42 percent of adults own a financial account, whether formal or informal.
Rwanda’s ‘Vision 2020’ aims for 70 percent financial inclusion by 2017 and 90 percent by 2020. Building on the company’s approach to developing partnerships with governments, NGOs and local businesses, MasterCard and the Rwandan government will address common challenges faced by the poor and often remote populations, such as the lack of formal identification and financial illiteracy.
