Agents of change: MSC’s study on DFS expansion in Côte d’Ivoire

• Dec 28, 2023
• 2 min

MSC conducted a study on behalf of CGAP to identify the best-performing ANM (Agent Network Management) models in Côte d’Ivoire’s rural areas and potential policy and regulation adjustments. It integrated a gender lens to understand women’s representativeness among rural agents and the limitations they may face. The diagnostic study revealed the challenges and constraints DFS providers face when they expand their agent networks in rural areas, such as regulatory constraints, taxation modalities, and lack of access to financing.

MSC ran a diagnostic study to highlight the challenges and constraints that DFS (Digital Financial Service) providers face when they expand agent networks in rural areas. MSC conducted the study to identify the best-performing ANM (Agent Network Management) models in rural areas of Côte d’Ivoire. The study also sought to identify potential policy and regulation adjustments to overcome the limitations of rural agents’ recruitment and viability. The study integrated a gender lens to understand women’s representation among rural agents and the limitations they may face when they start and conduct an agent business. The study also sought to understand their relationship with agents and how easily these women can access them.

The study involved a desk review, interviews with a sample of ANMs of different categories, and analysis and comparison of their business models and operations. It also estimated the percentage of female agents and customers, analyzed the regulatory and taxation regime’s impact on the agent business’s expansion and viability, and its impact on women.

The study identified challenges around regulatory constraints, inappropriate taxation modalities, and a lack of financial access for agents. It recommended granular public data’s development to create a national strategy that will improve coverage. The commission structure for agents and ANMs was also a concern, as it might not be sustainable for agent businesses in rural areas. The study underscored the need for responsible and protective agents to ensure consumer protection, especially in rural areas where they play a crucial role in customer transactions and complaints.

CGAP commissioned this project.