The United Nations Capital Development Fund (UNCDF) announces that it has just entered into a memorandum of understanding with the Bank of Central African States (BEAC) to improve the policy and regulatory environment for Digital Financial Services (DFS) in the CEMAC region (Cameroon, Congo, Gabon, Chad, Central African Republic and Equatorial Guinea).
« Given that an increasingly share of migration occurs in regional corridors, increasing the flow of remittances through formal channels at affordable costs is imperative to countries in the CEMAC region, » UNCDF explains. To achieve this goal, « UNCDF will provide technical assistance to BEAC on the legal framework and regulatory options relating to DFS in the CEMAC region, as per CEMAC’s international practices and strategic objectives,” it says.
In addition, the UN agency will help in driving change in the implementation of the Regional Financial Inclusion Strategy, taking into account its proposals from the Advisory Panel on Women and Digital Financial Services in the CEMAC region. The agreement will also launch public-private sector dialogues to federate the players in the digital financial ecosystem around the CEMAC regulatory framework for DFS.
« Remittances are an indispensable and durable source of development finance. Remittances are greater and more stable than foreign direct investment for many countries, and, in most cases, greater than official development assistance. Remittances are also a crucial financial source for the families of migrants. When they are sent digitally, remittances present a means to greater social impact and financial inclusion of migrants and their families who send and spend them in the real economy. The CEMAC region is no exception to this, » argues Xavier Michon, Deputy Executive Secretary of UNCDF, commenting on the importance of DFS for financial inclusion and economic development.
