caroline abel : financial inclusion policies for the youth in africa what have we learned so far? opening remarks ( virtual ) by ms caroline abel, governor of central bank of seychelles and chairperson of the african financial inclusion policy initiative, at the afi regional webinar on " financial inclusion policies for the youth in africa - what have we learned so far? ", 21 february 2023. * * * distinguished guests, participants, greetings to you all, i am pleased to be given the opportunity to deliver the opening remarks at this webinar on financial inclusion policies for the youth in africa. young people are the agents of change and can transform how the future generation manages their livelihoods and drives economic development. according to the united nations, there are approximately one billion young people in the world, accounting for 18 per cent of the global population. in africa, the youth represents 60 % of the continent's population, with a rapidly growing trend, and it is estimated that the continent will hold 42 percent of the world's youth by 2030. such figures highlight the potential for young people to make meaningful individual and collective contributions in their respective countries and globally. today's youth are already making their voices heard and partaking in decision - making on various issues of interest and importance to them, ranging from education, health, politics and climate change, to name but a few. they are also showcasing their potential as innovators and entrepreneurs. nevertheless, there is still room for improvement to ensure that youths are included and empowered to develop their full potential. while the challenges that youths face differ from country to country, fostering access to financial services is a common challenge. low financial literacy, legal restrictions, difficulty in accessing financial products and services for various reasons such as high transaction costs and difficulty in accessing loans as young people are sometimes considered high - risk customers due to limited savings in their accounts have been identified as some of the factors hindering youth access to financial services. these challenges highlight the need for targeted financial education initiatives and financial inclusion policies that can effectively address pertinent issues and realities faced by the youth. in this regard, regulators and policymakers have a crucial role to play in creating a conducive environment to promote youth financial inclusion by improving the regulatory frameworks and designing more inclusive policies. the transformation that the financial sector is going through, including the accelerated introduction of digital financial services and products, also presents opportunities to advance youth financial inclusion and inclusive growth, given the tech

believe authorities did their utmost in their response to the crisis at the beginning, given the challenges at that point in time. but it got worse, far worse, and new, more drastic measures were needed. that doesn ’ t prove that initial policies and measures were wrong. rather, it illustrates the determination of authorities to fight this crisis. but it also shows something else, that fighting this crisis demands international coordination. at best, uncoordinated nationally implemented measures may be effective in solving national problems. but a number of those measures unintentionally triggered problems in other countries. the chain effect of raising the deposit guarantee scheme protection is a clear example. the introduction of higher levels of depositor protection triggered a flow of savings out of other countries, forcing other governments to implement similar policies. coordination could have prevented negative side effects. many of the policies implemented to fight this crisis carry the risk of economic nationalism. uncoordinated national policies fail to take into account the complexity of the financial system. the interconnectedness of the financial world should have made it utterly unthinkable to act unilaterally. this does not just apply to measures targeting the soundness of financial institutions. in our integrated world any uncoordinated policy aiming to boost the economy, might cause negative externalities. however unintentionally, uncoordinated measures could spark a period of real protectionism. the net effect of such “ beggar - thyneighbour ” policies is a deepening crisis. supranational authorities could and should play a bigger role. enhanced coordination is not limited to governments, regulators or supervisors. during the financial crisis we saw several cases, most notably the collapse of lehman brothers in september 2008, which had a truly systemic impact. these events have demonstrated that the distinction between macro - and microprudential stability is hypothetical in practice. both are necessary. therefore there is an urgent need for close and continuous cooperation between macroprudential supervisors – central banks – and microprudential supervisors. to be frank, i don ’ t think the crisis is anywhere near its end. but i do think it is time to consider what shape an end to the crisis would take. fighting this crisis has been tough. reversing the implemented measures will require exactly the same coordination and determination. and reversing those policies isn ’ t going to be easy. the same national interests that drove the uncoordinated remedies to fight this crisis