The COVID-19 pandemic disrupted economies worldwide, with particularly severe impacts on developing countries. Women, youth, and micro, small and medium-sized enterprises (MSMEs), especially those operating outside formal financial systems, were among the hardest hit. At the same time, the crisis accelerated the adoption of digital technologies, pushing individuals, businesses and governments to rely on digital tools faster than ever before. This rapid shift highlighted the transformative role that digital financial services (DFS) can play in expanding access to financial opportunities, supporting broader economic participation and strengthening resilience to future shocks.
Against this backdrop, the Digital Finance for Resilience (DFS4Res) programme, a four-year initiative supported by the European Union (EU) and the Organisation of African, Caribbean and Pacific States (OACPS), and implemented by the United Nations Capital Development Fund (UNCDF) was launched in 2021 to support countries across 11 countries in Africa, the Caribbean and the Pacific. The programme aims to deploy digital finance solutions at scale to deepen financial inclusion and accelerate economic recovery from the COVID-19 pandemic, while strengthening resilience to future external shocks.
The specific objectives of the programme are:
To improve digital finance policies and regulations to provide early response to emergencies and create an enabling environment to economic recovery.
To create and strengthen digital finance ecosystems that support low income individuals in particular women and youth; and MSMEs to mitigate immediate shocks of emergencies and increase economic opportunities.
To deliver on these objectives, the programme leverages UNCDF’s decade-long experience providing technical assistance and catalytic capital in ACP countries. The programme works with governments, regulators and private sector actors to strengthen inclusive digital finance ecosystems.
Key interventions
During the implementation period, the programme has supported policy and regulatory reforms, private sector innovation and ecosystem coordination. Programme results include progress toward reaching over 600,000 low-income beneficiaries, advances in e-money licensing and consumer protection frameworks, the piloting and scaling of innovative digital wallets, agent networks and fintech-led solutions, and the establishment of digital finance associations to promote collaboration and sustainability. Hundreds of policymakers, regulators and ecosystem actors have also strengthened their capacity in digital finance and fintech supervision.
The programme is implemented in Ethiopia, Gabon, Malawi and Niger in Africa; Trinidad and Tobago in the Caribbean; and Fiji, Samoa, Timor‑Leste, Tonga and Vanuatu in the Pacific, working closely with regulators, policymakers, regional bodies, financial service providers, including banks, MFIs, FinTechs and MNOs, MSMEs and other underserved groups.
Mobile phone–based digital transactions at a community market stall demonstrate how accessible digital financial services helps micro‑enterprises continue operate, highlighting the role of digital finance in supporting informal businesses and daily commerce. Photo: UNCDF Ethiopia.
A user completes a digital payment transaction on a mobile phone at a small retail outlet, illustrating the everyday use of digital financial services to facilitate secure and convenient transactions for small businesses. Photo: UNCDF Ethiopia.
