FINAL SUBMISSION FINANCE FOR DEVELOPMENT PROJECT
- 1. Final Submission Finance 4 Development project Broadband infrastructure development in Southern Africa - promotion of instant cash transfers in disasters or emergencies. Introduction My project briefly highlights issues around promotion of Mobile Cash Transfers to meet the need in unbanked agricultural communities. I am bringing issues around public, private sector, WB and like-minded institutions’ proposal for a way forward to attract infrastructure development funds in Southern Africa where there are exchange rate challenges due to weakening currencies ie(zar)and lack of trust in Banking system due to failure and closure of Banks i.e. (Zimbabwe) Cash transfers through mobile network providers would curb both loss of value and portability hence the need to invest in this infrastructure development. Eliminination of middlemen ,high bank costs and minimising fraudulent activities. Reasons for participation:- key stakeholders Governments: - infrastructure development in rural or farming areas. Employment creation, increase tax base. Curb rural urban migration. Eliminate high bank costs Minimise 3rd party involvement in public cash transactions. Encourage diaspora remittances. Maintain regulation for sanity to prevail, monitor money laundering & terrorism. Encourage bankable deals.(ref: Pvt Fin 4 Dev Ngozi Okonjo-Iweala & Afsaneh Beschloss) Official Aid Provider: - intermediary role, use of technical expertise & grants mechanisms. Facilitate "GIF" design, help set them up and put some of own finances. Encourage private sector, capital markets participation & Blended finance. Link grant money into private sector funded structures. Crowd in private sector to allow multiplier to happen. Mobilize substantially more private capital. Assist in transparent legislation, where law is fairly established. Encourage stable predictable economic climate, to encourage free flow of capital. Create financial incentive regimes, free movement of people, money & open labour laws.(ref:WB From billions to trillions) Private sector: - tap into emerging markets offering good rates of return (6- 10%). Diversification & attractiveness of emerging markets. Incentives for investing make choices or informed decisions on where they put their money to work. Assess political, economic & social risks of investing in the region. Profits motivation, innovation & cost competitiveness.(ref:Infrastructure Finance,Overcoming Obstacles & Attracting Pvt Investment Richard Abadie) Summary conclusion Government to create enabling environment for investment to take place. Separation of red-tape & politics in way of doing business. Growth capital for infrastructure development resulting in significant benefits.This will result in instant relief in cases of emergency i.e. cash transfers for livelihoods to buy seed packs, fertilisers & food in event of severe droughts. Minimum transport costs and inefficiencies from travel to urban centers.Encourage direct diaspora remittances eliminating huge bank charges and boost confidence in unbanked communities. Restoration of some credibility in the banking sector and this would be a step in the right direction. Rural development, improvement of literacy through use of technology and promotion of solar energy projects(SDG) .Employment creation through commodity shops for implements, airtime and even education products, i.e. create a i-textbook to curb shortages
- 2. in rural schools. Creates choices in urban rural migration as a lot of economic opportunities will also be available in rural farming communities. Greater transparency in implementation of projects. Infrastructure has a really important attribute, which is it needs long term investments and the returns are long term.This provides long term guarantees that there will be returns now and in the future as communities catch on with technology.