The Vice President of the Republic of Ghana Dr Alhaji Mahamudu Bawumia has called on African governments to increase investment in digital technology infrastructure to boost the continent.
According to the Vice President, it would help promote the growth of the Fintech industry, enhance the digital financial sector and promote financial inclusion
Addressing the gathering during the 3i Africa conference currently underway in Accra, the vice president alluded that Africa presented a thriving market for digital technology and Fintech innovation.
Dubbed ‘Innovation, Investment and Impact’, the three-day conference is being organized by the Bank of Ghana, Development Bank Ghana and Elevandi, a subsidiary of the Monetary Authority of Singapore, and will end today is on the theme “Unleashing Africa’s Fintech and Digital Economic Potential”.
The conference was attended by Heads of State, Ministers, Central Bank Governors, members of the diplomatic, Consultants, the private sector captains of industry and a cross-section of the public.
He said the path and depth of Fintech development without digital identities and mobile money Interoperability between bank accounts and mobile money accounts would make that exercise less financially inclusive.
He said artificial intelligence solutions and digital literacy were expected to shape the Fintech landscape in Africa. “By focusing on these areas and research and development, we can unlock new opportunities and drive sustainable growth.”
FinTech industry in Africa has experienced a significant surge over the past decade, driven by technological advancements, rising mobile phone penetration, and a youthful population eager to harness the transformative power of digital financial services.
In the last three decades, African nations have undertaken significant reforms in the formal sector and achieved remarkable strides in macroeconomic management. This progress has translated into increased economic stability and predictable growth rates in several countries. Furthermore, national economies have become more open, fostering greater trade openness across the continent
“A pivotal driver accelerating this growth trajectory is the growing fintech sector. While African consumers and businesses initially hesitated to embrace e-commerce, representing a mere 1% of Africa’s $1 trillion economy in 2009, the landscape has since transformed significantly.”
Dr. Bawumia furthered that recent developments in fintech and mobile financial services have catalyzed rapid growth in online commerce. Recent statistics highlight this shift, projecting online sales in Africa to soar to $75 billion by 2025. Of this amount, an estimated $56 billion is anticipated to stem from consumer spending as digital payment platforms gain traction across developing economies; a substantial leap from the $8 billion consumer spending estimate recorded in 2013.
He said this proliferation of mobile connectivity has created an ecosystem ripe for fintech innovation. As telecommunications infrastructure expands, fintech services are rapidly penetrating previously underserved communities and remote regions. This expansion is fueled by significant investments from stakeholders in both the telecommunications and fintech sectors, aimed at reinforcing infrastructure and enhancing digital capabilities.
Source: Oyerepafmonline.com / Bernard K Dadzie
