Microcredit Summit Campaign announces Declaration on Economic Empowerment and Social Inclusion

The 18th Microcredit Summit Campaign today concluded in the capital under the patronage of H.H. Sheikh Hazza bin Zayed Al Nahyan, Vice Chairman of the Abu Dhabi Executive Council.

Organised jointly by Khalifa Fund for Enterprise Development, the Arab Gulf Programme for Development (AGFUND), and the Microcredit Summit Campaign, the summit gathered 1000 global policy makers, central banks managers and microfinance experts to explore and discuss innovative financial inclusion strategies that can create clear pathways to economic and social inclusion.

The delegates recognized the importance of microfinance and financial inclusion in contributing to a balanced distribution of development growth, poverty alleviation, reduction in unemployment, social welfare, empowerment of women as well as its contribution to other economic benefits that enhance the pillars of a sustainable economy.

At the closing ceremony, the summit partners committed to a declaration that supports the success of the Universal Financial Access 2020 goal, the World Bank 2030 goals, and the U.N. Global Goals.

Commenting on the declaration that aims to devise financial instruments and programs that support targeted efforts to reduce poverty and promote social welfare, Abdullah S. Al Darmaki, CEO of Khalifa Fund said: "Khalifa Fund will continue to promote entrepreneurship and support SMEs in Abu Dhabi, thus contributing to the development of a diversified, knowledge based economy, in line with the Abu Dhabi Economic Vision 2030."

Darmaki stressed that Khalifa Fund has made great progress in facilitating access to capital and improving the qualified workforce through unique training programs to boost the entrepreneur leadership of all social classes. He also pointed out that small and micro businesses constitute more than 40% of the total projects financed by the Fund.

Nasser Bakr al-Kahtani, CEO of AGFUND, said: "We are confident that we will execute the plans given in the declaration with the support of high level decision makers, executives and leaders. We all share the same objective, which is to implement programs that contribute to the overall growth of microfinance."

Larry Reed, Director, Microcredit Summit Campaign recommended a more focused and collaborated approach between governments, regulators, businesses, financial institutions and citizens towards building strong, stable financial systems for the most marginalized segments of society.

Abu Dhabi Declaration on Microfinance and Financial Inclusion includes: Work with governments and regulators to develop national financial inclusion strategies that: - Utilizes digital technology to build a national payments system that can reach everyone at low cost - Creates space for specialized financial institutions that provide a broad range of financial services that include saving to micro, small and medium businesses owners.

- Build financial systems that include a package of diverse and integrated services geared for low-income people - Develop legislations and incentives to encourage banks and financial institutions to adopt clear policies and strategies to increase the share of micro-projects of the total loan portfolio - Expands financial literacy/education so that people can use financial products in a way that improves their lives and helps them build assets Developing innovative financial options for entrepreneurs through: - Extending agricultural value chains to reach small scale farmers, especially in the rural areas.

- Linking government social payments to financial systems in a way that expands financial inclusion - Creating graduation pathways from social payments and basic livelihoods to micro, small and medium sized businesses - Increasing the financial access for Micro, Small, Medium Enterprises (MSME's) Creating partnerships between sectors and institutions that link increased financial inclusion to greater social inclusion, including: - Expanding access to health financing, health insurance, and health education - Expanding training and access for women - Creating employment opportunities for all those who can work, especially youth - Providing financial services for the older people and people with disability.

Source:WAM