Kigali, Rwanda – (African Boulevard News) – The potential of fintech in driving development in Africa was highlighted at the recent inclusive tech forum held in Kigali, the capital of Rwanda. The forum brought together industry experts, tech enthusiasts, and business leaders to discuss the role of fintech in accelerating growth in the continent.
With over 66% of the African population being unbanked, and with an estimated $42 billion funding gap required to meet the sustainable development goals by 2030, fintech offers a viable solution for driving financial inclusion and economic growth.
In his keynote speech at the forum, the Rwandan President, Paul Kagame, highlighted the need for Africa to tap into the power of fintech to fast-track development. “Fintech holds the key to unlocking the potential of Africa’s economic growth and creating opportunities for our people,” he said.
Several fintech start-ups are already making a significant impact in Africa, providing innovative solutions to long-standing problems in the financial sector. Examples include M-Pesa, a mobile money platform that has transformed the payment landscape in East Africa; Flutterwave, a payment gateway that offers seamless transactions across Africa and beyond, and Paystack, a Nigerian fintech start-up recently acquired by Stripe for $200 million.
Patrick Njoroge, the Governor of the Central Bank of Kenya, emphasised that fintech is more than just an innovative solution; it is a game-changer for Africa’s economic development. “Fintech can level the playing field for small and medium-sized enterprises, reduce the cost of financial services and increase financial literacy and inclusion,” he said.
Despite the potential, challenges in the regulatory environment, lack of infrastructure, and the digital divide remain significant hurdles to achieving widespread adoption of fintech in Africa.
Samantha Ndiwe, the Director of Policy and Advocacy at the African Fintech Network, emphasized the need for collaboration and engagement with policymakers to create an enabling regulatory environment for fintech to thrive. “An enabling environment that ensures trust, security and stability of fintech solutions is critical to the growth of the sector,” she said.
In conclusion, fintech has the potential to fast-forward development in Africa, drive financial inclusion, and accelerate economic growth. However, stakeholders must work together to address the challenges and create an enabling environment for the sector to thrive. As President Kagame aptly noted, “We must be willing to embrace change and innovate to achieve our development goals.”
