Antananarivo, Madagascar, May 15, 2023—To help expand financial inclusion in Madagascar, IFC and the Central Bank of Madagascar today announced a partnership to strengthen the country's public credit registry to improve credit reporting and increase access to finance for individuals and small businesses.
The public credit registry is a publicly owned registry that captures and stores financial information, including the borrowing history of individuals and businesses. Under the partnership, IFC will support the Central Bank of Madagascar to improve credit data sharing among banks, microfinance institutions, and the public credit registry in compliance with internationally accepted data protection and privacy laws.
IFC will train Central Bank of Madagascar employees, building their capacity to strengthen regulatory and policy reforms and improve their ability to protect consumers and encourage banks and financial institutions to increase private sector lending.
The project will improve the functioning of the country's credit information system, enabling more individuals and businesses to obtain the financing they need to grow, support economic activity and create jobs. It will also contribute to promoting complementarity between the public credit registry and the private credit bureau, bureau d'information sur le crédit (BIC).
"We are very pleased to partner with IFC on this project, which will contribute to establishing a modern and functional financial infrastructure system in Madagascar and strengthen financial sector resilience," said Aivo H. Andrianarivelo, Governor of the Central Bank of Madagascar. "Through this partnership, the Central Bank of Madagascar will improve its statutory mission to enhance the country's monetary policy and supervision of financial institutions to increase access to finance and support economic activity."
"Credit information systems are an important pillar of the financial infrastructure and can play a key role expanding financial inclusion in Madagascar," said Marcelle Ayo, IFC Country Manager for Madagascar. "IFC's partnership with the Central Bank of Madagascar will support financial resilience and improve credit reporting to enhance access to finance for individuals and small businesses."
The partnership will help increase credit data sharing between public and private credit reporting agencies, meaning that data collection and management of a borrower's credit or payment history will be supported by both public and private sources and contribute to improving access to finance.
IFC previously supported the government of Madagascar's efforts to establish a credit reporting law in 2019 and to launch and operate a new and modern private credit bureau to strengthen the financial sector and deepen financial inclusion.
About the Central Bank of Madagascar
BFM is an independent public Authority that serves as the monetary authority responsible for supervising Madagascar's financial system. It's primary objectives, as outlined in the Central Bank Act, are to maintain the stability of the national currency, promote financial stability and support the Government's economic Policy. BFM operates through 11 agencies located throughout the country.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.