By Ayuure Kapini Atafori
The Governor of Ghana’s central bank has stressed the need for African countries to address the information gap between investors and FinTech startups in order to stimulate the growth of the payment ecosystem on the continent.
“Against this background, the goal of the 3i Africa Summit is simple, yet audacious, and that 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,” Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG) said at the opening ceremony of the three-day 3i Africa Summit held at the Accra International Conference Centre on 13th May.
Dr. Addison emphasized that there is the need to fashion out concrete initiatives and partnerships at the end of the summit in order to achieve tangible policy outcomes that would ensure affordable and safe instant cross-border payments; 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.
He pointed out the need to foster innovation and investment across diverse sectors since that is central to the various numerous panel discussions during the summit. “The deal room and pitch fest will serve as platforms for entrepreneurs and investors to explore mutually beneficial partnerships, driving innovation forward and fuelling economic growth. Also, discussions on the use of Fintech for inclusion should remain paramount to ensure that the benefits of technological advancements are accessible to all segments of society. By harnessing the power of financial technology, we can bridge the gap and empower marginalized communities, advancing towards a more inclusive and prosperous future,” he said.
Attended by about 4,000 participants, the summit is being held on the theme: ‘Unleashing Africa’s Fintech and Digital economic potential.’ The high-powered summit is organized by the BoG, Development Bank Ghana (DBG) and the Monetary Authority of Singapore (MAS) through its subsidiary, Elevandi. The summit was opened by Ghana’s President, Nana Addo Dankwa Akufo-Addo, and attended by a host of high-level dignitaries such as the Prime Minister of Grenada, Dickon Mitchell, who is the Special Guest for the summit; the Secretary-General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene; and commissioners from the African Union (AU). Also present are the Ministers of Finance, Governors of central banks and corporate leaders from African countries and the Diaspora.
Dr. Addison said: “As Africans, we have an advantage in the digitisation race based on the bulging and tech savvy youthful population, the high mobile phone penetration, the consistent expansion of mobile network access coupled with the rising homegrown FinTech solutions.” He stated that these factors have provided fertile grounds to accelerate the digitalisation agenda on 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 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,” the BoG boss observed.
He said the regulatory aspect is another major reason not to ignore the issue of deficient funding in the FinTech space, adding that FinTechs should have the ability to navigate regulatory requirements and meet compliance standards, which should be non-negotiable parts of Africa’s financial industry.
“We all acknowledge that the last two decades has been eventful for Africa’s financial service industry. High mobile phone penetration coupled with a pool of local technology talents has resulted in various FinTech solutions that have expanded access to financial service to the unbanked and the underserved. Mobile money, a gamechanger product that is central to most digital payment innovations in Africa countries is enabling e-commerce and serving as an affordable solution for merchant acceptance of digital payments. Micro, small and medium sized enterprises (MSMEs) now have online presence, which has enabled them to expand their market reach outside the localities of operations,” Dr. Addison noted.
He continued: “These developments, emerging from a thriving Fintech sector, are based on the conducive environment created by the widespread regulatory reforms and modernisation of payment system infrastructure, including mobile money interoperability. With regards to intra-Africa trade, 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.”
