Access to Finance

More than 2 billion people (i.e. almost 50% of the adult population in developing countries) and 60% of firms in developing countries (mostly informal SMEs) lack access to formal financial services.

Financial inclusion, i.e. the provision of affordable and adapted financial services to all, is a key element of the inclusive and sustainable agenda and is a key component of the European Consensus for Development, the Communication on Private Sector and the European Investment Plan.

The EC does not consider access to finance as an end in itself, but as a necessary means to achieve economic and social objectives. By supporting access to finance, the EC aims to create economic and social opportunities for the excluded and underserved population, by integrating them into the formal financial system.

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The on-going portfolio of Access to Finance projects is estimated at around EUR 1.5 billion. Actions are implemented through budget support, projects (call for proposals, twinning, service contracts) or blending. They cover all regions, and mostly the areas of MSMEs, food security, sustainable agriculture and energy, but also migration, youth, non-state actors and women empowerment.

The EC’s support to access to finance remains on capacity building activities, but a growing number of interventions consist in the indirect provision of finance, through the blending instruments. Through the blending, the EU grants leverage public and private funds for SME development.

Key documents:

• Reference Document 10 “Trade and Private Sector Policy and Development”
• Reference Document 22 “Blending and Support to Private Sector Development”
• CGAP 2015 Guidelines for Funders
• Financial Inclusion: Introduction and EC approach.