Congratulations to Mauritania on adopting a new regulatory framework for e-payment services
This new framework has the potential to expand access to digital financial services to reach more Mauritanians. The Policy Accelerator team is honored to have supported the process through our work with the Central Bank of Mauritania.
A milestone towards inclusive finance
In June 2021, the Mauritanian Parliament adopted the draft law related to electronic payment services.
The adoption of this long-awaited regulatory framework is a key milestone in the creation of an enabling regulatory environment for the uptake of digital finance in Mauritania. It offers renewed opportunities for Mauritania to expand financial inclusion by making low-value, transactional payment services more accessible. Allowing new market players (like non-bank payment providers) can also improve the quality of payment and stored value services by increasing competition for retail customers.
Key stats
According to the 2018 Global Findex:
Approximately 20 percent of the population beyond 15 years old had financial accounts
Mobile money accounts reached only four percent of adults
The gender gap in financial access is five percentage points, which means that women are even less likely to be served than men
Policy Accelerator support
Close coordination with Mauritanian and international development partners has been instrumental in the success of the support provided to the Central Bank of Mauritania (CBM) for the adoption of this new e-payments regulatory framework. (Read more about in our blog post on Mauritania’s journey toward financial inclusion.)
Through open communication and sustained engagement, the CBM was able to guide the Policy Accelerator and other partners in how to best support their needs. Here’s how we collaborated:
July 2019
Invited by the Alliance for Financial Inclusion (AFI) and CBM in July 2019, the members of the Policy Accelerator attended a workshop of market stakeholders to discuss the design of the National Financial Inclusion Strategy (NFIS). After a presentation on lessons and best practices in NFIS development, the CBM expressed interest in receiving support from the Policy Accelerator in the revision of their e-money regulatory framework.
December 2019
The Policy Accelerator organized a diagnostic mission in December 2019 to understand the market context more deeply and the CBM regulatory objectives.
The team met with representatives from the public and private sector in Mauritania as well as development partners to discuss the digital finance ecosystem in the country, key trends, and areas of concern related to the regulatory environment. Several representatives from local banks, microfinance institutions, and telecom operators shared their perspectives on regulatory constraints acting as a barrier to financial inclusion in the country. Many stakeholders noted that they hoped the revision of the e-money regulatory framework could create the opportunity for non-bank actors to become e-money issuers.
January 2020 — October 2020
Diagnostic report
At the conclusion of the diagnostic mission, the Policy Accelerator team presented the findings to the CBM. The report considered good practices in the regulation of DFS and how these can be applied to the Mauritanian context (see our “Learn from peer markets” guide). It also shared insights from the extensive consultation and concluded with the presentation of various regulatory options available to the CBM. (Read a summary of the key conclusions from the diagnostic.)
Review draft law
The UNCDF analysis aligned with the contributions of other CBM partners, including the World Bank and AFI. The CBM later requested support from the Policy Accelerator team in reviewing the draft law on e-payments services in collaboration with experts from the World Bank.
This period also coincided with the initial outbreak of the COVID-19 pandemic, and the team was also able to provide feedback on the temporary instruction on mobile payment services, which was adopted on April 1, 2020 (N.4/GR/2020) as a policy response to the outbreak.
Capacity-building and training scholarships
Between January and October 2020, the Policy Accelerator team continued to support the CBM with capacity building and technical assistance, with a focus on the basic regulatory enablers of DFS, including non-bank licensing, tiered-KYC, and consumer protection (see CGAP’s Focus Note).
We provided scholarships for several CBM officials to participate in courses from the Digital Frontiers Institute, deepening their understanding of DFS and inclusive finance. In addition, the Policy Accelerator also advocated for an inclusive consultation process in the development of the new regulatory framework (see our “Consult with stakeholders” guide). A public consultation was launched by the CBM to gather comments from DFS stakeholders on the draft version of the law.
June 2021 and beyond
The adoption of the e-payments law in June 2021 serves as a turning point in ensuring marginalized groups can access to formal financial services in Mauritania. It will enable new actors to provide digital financial services, launch new products, and develop strategies for meeting the financial needs of two million people excluded from the formal financial sector.
Authors
Olivia-Kelly Lonkeu
Alexis Ditkowsky