Efe Ukala Why financial inclusion is key to economic recovery post COVID-19

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Why Financial Inclusion is Important in a Post-COVID World

In the face of unimaginable change brought about by the COVID-19 pandemic, it's crucial time to rethink our approach towards financial inclusion, technology, and the future of work. With over 30 million people unemployed in the US alone and a horrifying 75% of Small and Medium Enterprises (SMEs) in Kenya at risk of collapsing, we need to consider what these disruptions mean for financial inclusion and the future of our economies.

Who Am I?

I am Fau Kala, founder of Impact. Her, a non-profit organization that empowers African women to build scalable businesses. Over time, we have helped thousands of women across 48 African countries, providing them with essential know-how and connecting them to investors.

The Immediate Impact of COVID on Financial Inclusion

COVID-19's rampant course has revealed disturbing societal faults across the globe. In developing countries where economies largely rely on SMEs for job creation, the potential collapse of these enterprises could have devastating results - unemployment, food shortages, and a drastic decline in quality of life. The urgent question we must tackle is what the future holds for these economies.

Just as the traditional work environment has shifted, with roughly 90% of employees working from home, the landscape of financial inclusion is also poised to undergo transformative changes.

Finding Opportunities Amidst the Crisis

As we gaze into the ghostly fog of what the future may hold, a single, imposing figure starts to take shape - Technology.

Educational Technology, in particular, once neglected, now seems to be claiming the center stage. COVID-19 has forced people across the world to embrace remote learning. Unfortunately, those in countries where technology adoption has been slow are now floundering in the shadows of this unforeseen upheaval.

But the crisis has also opened doors.

Those countries that adapted early can ensure that education continues uninterrupted. The desperate need to keep the wheels of education turning has highlighted the importance of imbuing our future strategies with a technological backbone.

The Importance of being an Opportunist

We need to ensure that our innovations are more inventive because as we proceed to digitalize a lot of processes, humans need to get smarter. Flexibility is another key quality that must permeate our future plans, teaching us that adaptability is a key trait that every innovator, small business owner, or student must embrace in these tumultuous times.

Another important lesson–do not fall in love with your solutions but with the problems you are trying to solve. Innovators ought to contextualize their solutions to address current and future issues. An effective solution should be relevant now and position you as a key player in the new world.

Understanding Changing Investor Appetites Amidst a Pandemic

COVID-19 has dramatically changed investor appetites. Many companies that were about to receive an influx of capital now find themselves deserted. Most investors have redirected their resources towards keeping their existing portfolio afloat. Consequently, many promising startups are now left high and dry.

A critical point to note here is that amidst this turmoil, we have the power to define our own fate. The need of the hour is to incorporate technology into our businesses. Replacing the discretionary income which has taken a hit due to the pandemic, technology investment checks can be the lifeline many businesses need.

Redrawing the Definition of Financial Inclusion

The current ordeal is forcing us to redefine our understanding of financial inclusion.

Consider the economic predicament the US is facing - 30 million citizens unemployed and with no financial solace in sight. Many of them may have possessed bank accounts and a stable income before the pandemic, but are they still financially included without any regular financial influx?

In straightforward terms, having a bank account is not synonymous with being financially included. Financial inclusion should ideally equate to financial stability, something which seems to be slipping away for many around the globe.

A Sustainable Model for Financial Inclusion

Small businesses that once fulfilled the criteria for financial inclusion are now going under. As we continue to count the losses inflicted by the pandemic, the fault lines in our economies are becoming more prominent.

So, how can we ensure an inclusive economy for all in the wake of such turmoil?

The key lies in the hands of each one of us – students, tech start-ups, SME owners, the government. Innovation is critical, whether it is about nimbly adjusting to evolving employment conditions or developing ingenious business models. By being an inventive student, entrepreneur, or business owner, and most importantly, by being financially inclusive, we protect our societies from the brunt of the economic recession.

Financial Inclusion as an Essential Policy

Governments worldwide can play a vital role in promoting inclusion by drafting appropriate policies and stimulus packages that prioritize marginalized groups. By advocating for financial inclusion, we can help narrow the gap, contribute to GDP, and foster a favorable climate for job creation.

Final Thoughts

COVID-19 has also presented a unique opportunity to reset our values regarding financial inclusion and contemplate its role in our economies. By addressing financial inclusivity holistically, we can pave the way for a more resilient and inclusive economic future post-COVID.

Connect with me on LinkedIn (FA U Kala) if you have any questions or if you require assistance in navigating these challenging times.


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