Adapting to Times of Uncertainty: Co-Creating the Future of Inclusive Finance

FinDev Gateway: SAM has a new name! It is now SAM: African Inclusive Finance Week. What can you tell us about this new name, and how this conference has evolved to become a key event for the African financial inclusion community?

Laura: I think the key to success for SAM has been to evolve alongside the sector. ADA made a significant change about four years ago when we expanded our approach beyond supporting microfinance institutions. We realized that to have more impact on vulnerable populations in developing countries, we needed to engage with a wider range of actors in the field: incubators, accelerators, fintechs, agritechs, innovators in general. All these actors contribute a lot to our work with clients, bringing new solutions.

So, the new name of the conference is a natural evolution - a reflection of how we’re evolving with the sector we serve. With every edition, we make a conscious effort to be open-minded and to look at what’s happening in the sector: who the new actors are, who’s contributing and how the landscape is shifting. It’s this openness to change that keeps the event relevant and impactful.

Another key to success is that it’s not just a conference or a traditional event. It’s really a space where the sector can come together to reflect, exchange ideas and collectively envision what lies ahead for financial inclusion. I’m very enthusiastic about this event and the organizations that participate. For me, it feels like a real gathering of the sector: a full week where people come together with positive energy, eager to discuss, to share their experiences. This gathering is powerful and it’s a real privilege to be part of, not just as organizers, but as members of the community.

FinDev Gateway: This version of SAM is coming at an interesting time for the development community. How would you describe the current state of financial inclusion?

Laura Foschi: We’re living in a time of uncertainty. Rapid shifts are taking place - political, social and environmental. When you look at the state of development aid and international cooperation, it can feel quite daunting. The cuts in aid which took place earlier this year from the new U.S. government as well as other European development aid funding were unexpected and are having real consequences for our sector and the countries we work in. But for us at ADA, the risk is not just in the funding cuts themselves; the greater risk would be to follow that trend and to resign. On the contrary, our response is to maintain our engagement and to keep supporting both the Luxembourgish cooperation and the vulnerable populations we serve.

For us at ADA, the risk is not just in the funding cuts themselves; the greater risk would be to follow that trend and to resign. 

 

FinDev: What types of collaborations or partnerships will be crucial to achieve more sustainable and inclusive financial systems in the future?

Laura: As public resources become more limited, it may be time to look more intentionally at the private sector and find ways to bring in other actors who can contribute to sustainable development and complement the lower levels of public resources. Private sector players, especially in Europe, are increasingly sensitive to these issues. Many are already engaged in ESG (Environmental, Social, Governance) investing and are now looking to deepen impact with their funding. While the financial inclusion space has traditionally been seen as a niche sector with little mainstream investor involvement, that’s changing.

Over the next few years, I believe it will be crucial to bring these stakeholders on board. We started engaging with the private sector over 15 years ago with the creation of a fund, and two years ago, we launched an innovative tool aimed at attracting private investors. Going forward, we want to do even more, particularly in raising awareness within Luxembourg’s financial sector. Our role is to show how financial inclusion can be a powerful, practical component of sustainable finance that has real potential to create lasting impact.

FinDev: What emerging trends do you believe will define the future of our sector in the next 5 years?

Laura: FSPs are having to adapt. To climate-related shifts, but also to the economic and social crises that many countries are facing. As part of this adaptation, an even greater emphasis on client needs has become essential. If FSPs want to survive and stay relevant, they must integrate client needs into the core of their strategy and provide services that are both adapted to client needs and affordable.

For example, in regions like the Sahel, the effects of climate change, political instability and population displacement are dramatically reshaping the lives of clients. In such contexts, client needs are constantly evolving, and that means the way services are delivered must evolve as well.

An equally important trend is a focus on institutional resilience: Financial service providers must become as resilient as the clients they serve. That means being flexible, embracing technology and finding the right balance between digital tools and human interaction. Artificial intelligence is an obvious example: it holds great promise, but needs to be understood, regulated and adapted to become a powerful tool that genuinely supports inclusion, rather than further distancing or excluding vulnerable populations.

The real challenge is making sure these solutions are not only innovative but also truly relevant and understood by the end clients. They need to be measured carefully to ensure they’re having a positive impact on people’s lives.

At the core of all this, what remains essential is starting from client needs. Too often, we begin with solutions and then try to apply them to the client. But it should be the other way around. We have to listen first to really understand the evolving realities people face. Only then can we co-create solutions that are relevant and truly impactful.