The Governor of Bank of Ghana, Dr. Ernest Kwamina Yedu Addison has revealed that, Africans have an advantage in the digitisation race based on the bulging and techsavvy youthful population, the high mobile phone penetration, the consistent expansion of mobile network access coupled with the rising homegrown FinTech solutions.
“These factors have provided fertile grounds to accelerate the digitalisation agenda across the continent. While these are commendable, it is important to note that lack of requisite investments in African FinTechs could slow the pace of innovation and scalability of solutions in achieving the desired impact of a digitised Africa. The general lack of investor visibility Dr. Addison indicated, is a major challenge for most local FinTechs. Without sufficient capital, brilliant ideas, and prototypes of FinTech startups solutions with the potential to address the diverse financial service needs fail to progress to production”.
Dr. Ernest Kwamina Addison made this statement when speaking at the 2024 3i Africa Summit on the theme, “Unleashing the FinTech and digital economic potential of Africa”
The forum presents a unique opportunity for private and public sector stakeholders to explore, discuss, and interrogate technological advances, FinTech innovations, and financial sector policies to revamp the digital financial services industry in support of Africa’s socio-economic transformation.
He indicated that, the rapid evolution of technology has impacted all facets of life globally adding that, for the financial sector, actualisation of novel technologies in the payment ecosystem has revolutionised business transactions, reshaped customer behaviour, and redefined the nature of commerce.
“FinTechs should have the ability to navigate regulatory requirements and meet compliance standards, which we all agree are non-negotiables, especially in Africa’s financial industry. Hence, the need to address the information gap between investors and FinTech startups to stimulate the payment ecosystem”.
The goal of the 3i Africa Summit Governor Addison stated, is to share the African FinTech narrative, discuss the opportunities and challenges on how to employ digital technology, as well as enhance collaboration among policymakers, investors, and innovators to advance the economic prosperity of the African continent and its partners.
With regards to intraAfrica trade, Governor said the Pan-African Payment and Settlement System (PAPSS) has been developed to support free trade across the continent in line with the objectives of the Africa Continental Free Trading Area (AfCFTA). “This will enhance both domestic and cross-border payment systems and empower MSMEs by facilitating access to financing opportunities and broader domestic and global markets”.
The AgriTech sector he hinted, holds immense promise to drive agricultural transformation and food security across the continent added that, by leveraging technology, Africa can promote sustainable practices, empower rural communities, and enhance productivity, thereby unlocking the full potential of Africa’s agricultural sector.
The 3i Summit is expected to achieve tangible policy outcomes that would enable affordable and safe instant cross-border payments.
Also, empower FinTechs to drive Africa’s economic transformation agenda by committing to a sound regulatory environment.
Advance digital public infrastructure, and explore the role of FinTech in bridging the financing gap for SMEs, including the creative arts industries.
