Impact of the COVID-19 pandemic on farmers-Kenya report

Posted on by MSC

The COVID-19 pandemic has had a severe impact on the economic well-being of farmers. Despite an improvement in the sale of agricultural produce after relaxations of restrictions, low demand and fall in prices of agriculture produce continue to affect revenues and profits. The decline in non-agriculture opportunities for income generation has increased the pressure on household resources. While some farmers received food assistance in the initial phase of the pandemic, most did not get direct support from the government. With limited savings at their disposal, many farmers have turned to credit and the sale of assets. Farmers are likely to default on the repayment of existing loans but they urgently need access to credit to continue agriculture operations. Our report explains the current situation of the farmers and the support they need from the government, financial institutions, and donors to recover from the shocks of the pandemic.

 

Impact of the COVID-19 pandemic on CICO agents- Kenya report

Posted on by MSC

Although CICO agents have been at the forefront of the social cash transfer program of the government during the COVID-19 pandemic which provided agents with some additional income. However, the commissions of CICO agents took a hit, which in turn affected the viability of the agency business. This was mainly due to the extension of fee waivers on bank-to-bank and bank-to-mobile wallet transactions and fee waivers on mobile wallet transactions up to KES 1,000 (~USD 100), along with low customer footfall. Liquidity remains a top concern for many agents as they lack adequate resources. Agents, therefore, need access to concessionary loans or stimulus packages from the government to revive their businesses as the economy gradually reboots. Our new report captures the challenges in agency operations and the coping strategies of CICO agents. It also provides recommendations for policymakers, financial institutions, and donor organizations to support the recovery of CICO agents.

 

 

Impact of the COVID-19 pandemic on micro, small, and medium enterprises (MSMEs)- Kenya report

Posted on by MSC

As the economy gradually re-opened in Kenya, micro, small, and medium enterprises continued to feel the effects of the COVID-19 pandemic and earn less than they used to. The relaxation of restrictions restored transportation routes and enabled the easier flow of goods across locations, which improved supply chains. However, the adverse economic impact of the pandemic has reduced the purchasing power of customers significantly and forced them to spend more cautiously. This presents a challenge for entrepreneurs, who have been dealing with depressed demand for goods and services and low revenues on one hand and struggling to meet the rising expenses of their business and household on the other. This report unravels the impact of the pandemic on micro and small enterprises and highlights their coping strategies. It also provides recommendations for policymakers, financial institutions, and donor organizations to help these enterprises build resilience and recover.

 

 

Response to COVID-19 in Bangladesh

Posted on by MSC

This report is based on MSC’s second round of research on the recovery of low- and middle-income (LMI) segments in Bangladesh from the COVID-19 pandemic. The report of the first round of the study is available here. Based on the survey of 97 low- and moderate-income households in Bangladesh, this report examines the effects of the pandemic on their lives and seeks to understand their perspective. It also contains case studies, recommendations, challenges, concerns, and opportunities for the LMI community in these trying times.

 

 

 

 

KYC practices in Indonesia and opportunity for implementing e-KYC for accelerating financial inclusion

Posted on by MSC

Across various developing countries, e-KYC provides multiple benefits over traditional paper-based KYC. Our study in Indonesia shows that the implementation of e-KYC could save the FinTech sector USD 3.9-4.2 billion (IDR 57-61 trillion) and the banking sector close to USD 157-212 million (IDR 2,357–3,123 billion) in the next 10 years. To accelerate financial inclusion and support the needs of a booming digital economy, a low-cost and robust digital infrastructure to verify the identity of an individual is a necessity. This policy brief provides recommendations to accelerate the implementation of e-KYC in Indonesia.