Strengthening social finance to protect children in Mali
19 July 2024
Bamako, Mali, July 11, 2024 - Bamako was the scene of a workshop bringing together major players in the Malian financial sector. Organized as part of the ACCEL Africa project, this event aimed to mobilize the financial sector in the fight against child labour, a persistent scourge in Mali.
Understanding child labour: A major challenge
The workshop began with an in-depth awareness-raising on the issue of child labour. Participants were able to grasp the complexity of this phenomenon, its root causes, often linked to poverty and exclusion, and its negative consequences on the development of children and society.
Emphasis was placed on the importance of distinguishing child labour from traditional learning activities, which can play a positive role in the socialisation and education of younger generations.
The key role of social finance
Social finance, which aims to reconcile economic performance and social impact, has been identified as a powerful lever to combat child labour. By promoting the financial inclusion of vulnerable populations, it can help improve their livelihoods and reduce the economic pressure that pushes families to resort to child labour. The workshop provided the key foundations for financial sector stakeholders to become aware of and understand the importance of their role in combating child labour.
"We are very pleased with this workshop, it has enabled us to strengthen our capacities and knowledge on the concept of child labour and the links with financial inclusion,” said a representative of a microfinance institution after the workshop.
Diagnosis of the Malian financial sector in the fight against child labour
Malian financial stakeholders actively participated in the workshop, demonstrating their growing commitment to combating child labour. They collectively identified the strengths and weaknesses of the financial sector in this area, as well as the opportunities to be seized. Among the strengths, we note a significant territorial network, a relationship of trust established with clients and an increasing digitalization of services, all assets to be exploited to combat child labour.
However, major challenges persist. The lack of funds dedicated specifically to this cause, the inadequacy of financial products and services to the needs of vulnerable populations and the lack of expertise in assessing risks related to child labour are major obstacles. Participants also stressed the importance of strengthening the capacities of financial sector stakeholders on this topic, particularly in terms of training, assessment tools and the development of adapted products.
Despite these challenges, the workshop highlighted many opportunities for the Malian financial sector. The presence of support and supervision structures, business opportunities linked to financial inclusion and the potential of digital finance to reach the most vulnerable populations are all levers to be used to strengthen the impact of the financial sector in the fight against child labour.
Collaboration and synergies to combat child labour
The Bamako workshop highlighted the importance of collaboration and synergies between financial sector actors to effectively combat child labour. Participants recognized that pooling their resources, expertise, and networks is essential to address the challenges facing the sector.
Two areas of collaboration were identified as priorities:
- Capacity building for microfinance institution (MFI) employees on child labour: Participants emphasized the importance of training MFI staff so that they are better equipped to identify, prevent, and mitigate child labour risks in their activities.
- Development of innovative financial solutions: The workshop encouraged participants to explore new approaches and design financial products tailored to the needs of vulnerable populations, thereby helping to reduce their dependence on child labour.
The main decision resulting from the workshop is the creation of a common charter for the microfinance sector, led by the APSFD (Association Professionnelle des Systèmes Financiers Décentralisés). This charter, which will be validated by all members, will materialize the commitment of MFIs in the fight against child labour and will serve as a roadmap for future actions.
"I think this is the beginning of our collaboration with the ILO. We hope to move towards the next steps, including the development of the charter on child labour, which is very important," said the APSFD representative, emphasizing the importance of this initiative for the Malian financial sector.
This initiative demonstrates the willingness of the Malian financial sector to unite to combat child labour and contribute to improving the living conditions of the most vulnerable populations. The development and implementation of this joint charter is a promising step towards a future where every child in Mali can grow and flourish free from economic exploitation.
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