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Financial Sector Development and Implementation Plan (FSDIP) in Comoros

Project Development Objective (PDO)

The objective of the proposed technical assistance is to assist the government of Comoros in designing a strategy for financial sector development with a view to introducing a prioritized and sequenced reform agenda that will deepen the financial sector and improve the efficiency of financial intermediation and promote financial inclusion.

Background

Given the small size and rather unique elements of the financial sector in Comoros, the proposed Financial Sector Development and Implementation Plan (FSDIP) will provide a targeted approach to financial sector development. It will do so by increasing access to safe and prudent financial products and services, diversifying the range of financial products, and strengthening its financial infrastructure.

The FSDIP will also complement the country’s developmental framework by aligning the development of the financial sector with the goals set by the government in previous analytical works. This alignment entails (a) addressing cross-sectorial issues within the financial sector, (b) addressing the objectives of stability and inclusion, and (c) prioritizing a number of reforms needed to further develop a stable, safe, efficient, and accessible financial sector. Given the importance of this need, authorities requested assistance in developing a strategic financial sector implementation plan that is coordinated, prioritized, and well-sequenced.

 

Activities

In developing the FSDIP, the project team is undertaking the following activities:

Activity 1: Prepare a stocktaking report 
The report reviews all completed and ongoing work on financial sector development and provides additional analysis to recommend necessary reforms and actions in the FSDIP. The areas covered include legal and regulatory frameworks, financial infrastructure, payment systems, and financial inclusion.

Activity 2: Draft the FSDIP and conduct an internal workshop 
On the basis of the review in activity 1, the project team is working with authorities to elaborate on a medium-term strategic plan for the development of the financial sector and is providing a prioritized and budgeted road map for interventions. This work includes designing a monitoring and evaluation system to help ensure the transformation of the strategy into effective policies and regulations. 

Activity 3: Prepare the final FSDIP and disseminate 
To ensure the FSDIP achieves a positive impact by mobilizing support and financial resources, the project team is conducting a dissemination workshop with relevant regulatory and supervisory bodies, other relevant ministries, private sector representatives, and donors. 

Expected Outcomes

The expected outcomes of the project are as follows:

1.  Adoption and implementation of the FSDIP by Comoros’s authorities

2.  Increased financial depth, access, stability, and efficiency