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Financial Sector

Boosting entrepreneurship in rural Afghanistan

Miki Terasawa's picture
The Afghanistan Rural Enterprise Development Project has linked rural producers, inlcuding saffron farmers with markets to create businesses and provide employment opportunities to many Afghan women and men.
The Afghanistan Rural Enterprise Development Project has linked rural producers, including saffron farmers with markets to create businesses and provide employment opportunities to many Afghan women and men. Photo Credit: AREDP/ World Bank.

Meet Mohammad Naim, a saffron farmer in Afghanistan’s Herat province.  In 2013, Naim launched a new business, the Taban Enterprise Group after he and his partners received training and attended agriculture fairs nationwide.

Taban cultivates, processes, and markets saffron, and since its founding, it has steadily improved the quality of its saffron and expanded operations. Today, the company employs 120 women annually for seasonal work to harvest and process the valuable crop.
 
This business success story started with small savings pooled together by rural men and women like Naim.
 
Since 2010, the Afghanistan Rural Enterprise Development Project (AREDP) has linked rural producers with markets and helped villagers form savings and credit groups to create businesses or expand their small enterprises.

Why Do Foreign Investors’ Attitudes toward Women Matter?

Heba Shams's picture
Gender equality is one of the sustainable development goals (SDGs) that calls for ensuring women’s full participation in political, economic and public life as a target. Gender inequality is still a key development issue. The World Economic Forum’s Gender Gap Report 2017 found a gender gap of 42% when it came to labor force participation and earned income. Unrealized Potential, a May 2018 publication of the World Bank Group, puts a staggering figure to the cost of this inequality in earnings - $160.2 trillion globally, or $23,620 per capita.
Kuralay Aitzhanova, Dispatcher Manager at the Energy Transmission Control Center of KEGOK. Kazakhstan. Photo: Shynar Jetpissova / World Bank

How can we unlock the potential of household enterprises in Tanzania?

Julia Granata's picture
Access to finance was the major constraint to starting or growing a household enterprise. Photo: Odette Maciel

Non-farm household enterprises provide an important opportunity for employment in Tanzania. Agriculture is still the primary economic activity of the country, but the economy is shifting away from it and the number of people employed in this sector has been declining since 2006. At the same time, nearly 850,000 individuals a year enter the labor market seeking gainful employment and non-farm household enterprises are growing rapidly. Across the country, 65.9% of households reported household enterprises as a primary or secondary employment.

Due to the growing importance of non-farm household enterprises, our team conducted a study to understand why household enterprises are not growing and what their major constraints are to productivity gains.

Stories of success: We-Fi’s Women Entrepreneurs Reporting Award

Priya Basu's picture
 
Amanda Burrell, Documentary Filmmaker. © World Bank
Amanda Burrell, documentary filmmaker, receiving the award. © 2018 One World Media Awards


Jordan’s Water Wise Women initiative puts women at the heart of efforts to combat severe challenges in water supply and sanitation by training more than 300 local women to be plumbers.  The program, led by the German government, led to the formation of a women’s cooperative that bids for commercial contracts in schools, mosques, and government agencies.
 
A short documentary film produced for Al Jazeera showcases how these women are not only challenging stereotypes by thriving in the male-dominated profession of plumbing, but also implementing a range of water management techniques for their communities.
 
Each group of Water Wise Women is trained to eradicate water leakage and improve hygiene.  Trained women receive toolboxes and funding for outreach to disseminate information within their community and reach at least 20-25 other women.
 
The film was just awarded the Women Entrepreneurs Journalism Award, sponsored by the Women Entrepreneurs Finance Initiative (We-Fi), as part of the 2018 One World Media Awards. This is the first time that the One World Media Awards have included reporting on women’s entrepreneurship as a category. The award covers broadcast, digital, film or print journalism that explores women’s entrepreneurship in developing countries. Reporting can showcase stories of successful female entrepreneurs, the challenges women face in trying to start or grow their businesses, and/or the critical role that women entrepreneurs play in economic development by boosting growth and creating jobs. 

Applications open for third round of funding for collaborative data innovation projects

World Bank Data Team's picture
Photo Credit: The Crowd and The Cloud


The Global Partnership for Sustainable Development Data and the World Bank Development Data Group are pleased to announce that applications are now open for a third round of support for innovative collaborations for data production, dissemination, and use. This follows two previous rounds of funding awarded in 2017 and earlier in 2018.

This initiative is supported by the World Bank’s Trust Fund for Statistical Capacity Building (TFSCB) with financing from the United Kingdom’s Department for International Development (DFID), the Government of Korea and the Department of Foreign Affairs and Trade of Ireland.

Scaling local data and synergies with official statistics

The themes for this year’s call for proposals are scaling local data for impact, which aims to target innovations that have an established proof of concept which benefits local decision-making, and fostering synergies between the communities of non-official data and official statistics, which looks for collaborations that take advantage of the relative strengths and responsibilities of official (i.e. governmental) and non-official (e.g.,private sector, civil society, social enterprises and academia) actors in the data ecosystem.

Financial inclusion in Ethiopia: 10 takeaways from the latest Findex

Mengistu Bessir's picture
In Ethiopia, women account for a disproportionate share of the unbanked, and the gap is widening. Photo: Binyam Teshome/World Bank

The World Bank Group (WBG), with private and public sector partners, set an ambitious target to achieve Universal Financial Access (UFA) by 2020. The UFA goal envisions that, by 2020, adults globally will be able to have access to a transaction account or electronic instrument to store money, send and receive payments. The WBG has committed to enabling one billion people to gain access to a transaction account through targeted interventions. Ethiopia is one of the 25 priority countries for UFA initiative.

Achieving Financial Inclusion: Fintech, account usage, and innovation

H.M. Queen Máxima's picture
Soahanginirina Razafindrahanta, a teller at a Baobab bank outlet counting out money for a customer in Antananarivo, Madagascar. © Nyani Quarmyne/International Finance Corporation
A teller at a Baobab bank outlet counting out money for a customer in Antananarivo, Madagascar. ©  Nyani Quarmyne/IFC

For almost a decade, the global community and national governments have made concerted efforts to expand financial inclusion—creating a financial system that works for all and opens the doors to greater stability and equitable progress.
 
This has been a demanding challenge. At the start of our engagement on financial access back in 2013, we said that having a real target with an end date would keep us focused and give us a benchmark against which we could measure progress.

De-risking and remittances: the myth of the “underlying transaction” debunked

Marco Nicoli's picture
Also available in: Español | Français
Societé Genérale Mauritanie bank branch in Nouakchott, Mauritania.
Societé Genérale Mauritanie bank branch in Nouakchott, Mauritania. ©️ Arne Hoel

This Saturday, June 16, we celebrate International Day of Family Remittances to recognize “the significant financial contribution migrant workers make to the wellbeing of their families back home and to the sustainable development of their countries of origin.”

Which is why it is the perfect time to talk about a trend facing remittance service providers who migrants rely on to transfer their money across borders and back home.
In recent years, the international remittance services industry has been subject to the so-called “de-risking” phenomenon. Banks believe that anti-money laundering and counter financing of terrorism (AML/CFT) regulations and enforcement practices have made serving money transfer operators (MTOs) too risky from a legal and reputational perspective. For banks, the profit of serving MTOs is not considered sufficient to justify the level of effort required to manage these increased risks.
 

Six ways Sri Lanka can attract more foreign investments

Tatiana Nenova's picture
In 2017, Foreign Direct Investment (FDI) into Sri Lanka grew to over $1,710 billion. But Sri Lanka still has ways to go to attract more FDI.
In 2017, Foreign Direct Investment (FDI) into Sri Lanka grew to over $1,710 billion. But Sri Lanka still has ways to go to attract more FDI. Credit: Shutterstock 


To facilitate Foreign Direct Investment (FDI), Sri Lanka launched last week an innovative online one-stop shop to help investors obtain all official approvals. To mark the occasion, this blog series explores different aspects of FDI in Sri Lanka. Part 1 put forth 5 Reasons Why Sri Lanka Needs FDI. Part 3 will relate how the World Bank is helping to improve Sri Lanka’s enabling environment for FDI.

Sri Lanka and foreign investments read a bit like a hit and miss story.

But it was not always the case.

Before 1983, companies like Motorola and Harris Corporation had plans to establish plants in Sri Lanka’s export processing zones. Others including Marubeni, Sony, Sanyo, Bank of Tokyo and Chase Manhattan Bank, had investments in Sri Lanka in the pipeline in the early 1980s.

All this changed when the war convulsed the country and derailed its growth. Companies left and took their foreign direct investments (FDI) with them.

Nearly a decade after the civil conflict ended in 2009, Sri Lanka is now in a very different place.

In 2017, Foreign Direct Investment (FDI) into Sri Lanka grew to over $1,710 billion including foreign loans received by companies registered with the BOI, more than doubling from the $801 million achieved the previous year.

But Sri Lanka still has ways to go to attract more FDI.
 
As a percentage of GDP, FDI currently stands at a mere 2 percent and lags behind Malaysia at 3 – 4 percent and Vietnam at 5 – 6 percent.

Financial repression and bank lending: Evidence from a natural experiment in an emerging market

Tomás Williams's picture

Since the early 2000s, local-currency debt (mostly traded in domestic markets) became a growing and important source of funding for several governments in emerging market economies. Despite their impressive growth, many domestic sovereign debt markets maintain a captive domestic audience that facilitates direct credit to government. This represents a form of financial repression 1, which can lead to a crowding out of private credit.

The degree of this form of financial repression depends crucially on government access to foreign credit. If there is a low presence of foreign investors in domestic sovereign debt markets, governments have to rely heavily on domestic financial institutions potentially worsening the crowding out of private credit. In turn, an increased presence of foreign investors might reduce financial repression, and free resources for the private sector. As a result local firms may be able to finance more investment projects and boost economic activity. Although intuitive, there is little evidence on this topic because of identification challenges.2 In a recent study (Williams, 2018), I use a quasi-natural experiment in Colombia and provide evidence on how the entrance of foreign investors into domestic sovereign debt markets reduces financial repression and increases domestic credit growth, boosting economic activity.


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