How Has the Reduction in International Aid Impacted Financial Service Providers?
The global landscape of international aid is currently undergoing a profound transformation. With a reduction of 7.4 % in 2024 and with even sharper cuts expected in 2025, many development sectors are under strain, but few as much as that of the financial inclusion.
A new field investigation, led by the Grameen Crédit Agricole Foundation in partnership with CERISE+SPTF and the Financial Inclusion Equity Council (FIEC), sheds new light on the repercussions of these aid cuts. Based on responses from 86 organizations operating in 58 countries, the study highlights both the immediate consequences for financial service providers (FSPs) and the broader impacts on the vulnerable populations that they accompany.
Although the inclusive finance sector was designed to be self-sufficient, the data shows that 58 % of the FSPs still depend on programs or funding supported by international aid. These results mark a turning point for the sector, which now calls for strategic adaptation and strengthened cooperation between stakeholders.
