Home Science Technology Dr. Addison Laments Inadequate Investment In African FinTechs

Dr. Addison Laments Inadequate Investment In African FinTechs

Dr. Ernest Addison
Dr. Ernest Addison

Governor of the Bank of Ghana (BoG) Dr. Ernest Addison, has highlighted the critical need for increased investment in African FinTechs to prevent a slowdown in innovation and scalability of digital solutions on the continent.

Speaking at the opening of the three-day 3i Africa Summit Dr. Addison, emphasized that inadequate investment could impede the progress of achieving a digitized Africa.

In his address, Dr. Addison pointed out that a significant challenge facing local FinTechs is the general lack of investor visibility.

He noted that without sufficient capital, many promising ideas and prototypes with the potential to address diverse financial service needs fail to progress to production.

He warned that this lack of funding could stifle innovation and the deployment of scalable solutions needed for Africa’s digital transformation.

“The rapid evolution of technology has impacted all facets of life globally,” Dr. Addison said.

“For the financial sector, novel technologies in the payment ecosystem have revolutionized business transactions, reshaped customer behavior, and redefined the nature of commerce.”

He underscored the urgency for Africa to accelerate its digitalization agenda through the 3is of innovation, investment, and impactful policies to boost economic growth and development.

Dr. Addison highlighted several advantages Africa has in the digitization race, including a tech-savvy youthful population, high mobile phone penetration, and the consistent expansion of mobile network access.

These factors, combined with rising homegrown FinTech solutions, provide a strong foundation for digital growth.

He also noted the significant impact of regulatory reforms and the modernization of payment system infrastructure, including mobile money interoperability, which have created a conducive environment for the thriving FinTech sector.

This, in turn, has enabled Micro, Small, and Medium-sized Enterprises (MSMEs) to expand their market reach beyond local boundaries through an online presence.

Dr. Addison emphasized the importance of the Pan-African Payment and Settlement System in supporting free trade across the continent in line with the objectives of the Africa Continental Free Trading Area (AfCFTA).

This system aims to enhance both domestic and cross-border payment systems, empowering MSMEs by facilitating access to financing opportunities and broader markets.

“We need to have fashioned out concrete initiatives and partnerships by the end of this 3i Summit to achieve tangible policy outcomes that will enable affordable and safe instant cross-border payments,” Dr. Addison stated.

He called for a commitment to creating a sound regulatory environment, advancing digital public infrastructure, and exploring the role of FinTech in bridging the financing gap for SMEs, including those in the creative arts industries.

The Governor concluded by stressing the central theme of fostering innovation and investment across diverse sectors throughout the Summit.

“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.

The 3i Africa Summit presents a unique opportunity for stakeholders to collaborate on advancing the digital financial services industry, thereby supporting Africa’s socio-economic transformation and ensuring the continent’s competitive edge in the global digital economy.

The highly-anticipated summit on fintech and digital economy in Africa has exceeded expectations, with over 4,000 participants surpassing the initial target of 2,500.

Among the attendees are three Heads of State, 10 Governors of Central Banks, and over 150 Chief Executives and Senior Executives of FinTechs and financial institutions from across the globe.

Notably, key players in the financial, investment, policy-regulatory, and digital technology domains in Africa are also actively participating.

The summit aims to facilitate crucial conversations and strategic alliances to nurture the flourishing African digital economy and fintech sector.

Through coordinated efforts, the summit seeks to develop creative solutions tailored to address Africa’s unique challenges and leverage its abundant opportunities.

Participants will engage in a diverse range of sessions covering over 60 topics, with a focus on finding actionable pathways to drive momentum and achieve progress in the fintech sector.

Key topics for discussion include interoperability of data, digitalizing intra-Africa trade, Africa’s digital economic policy, incentives, infrastructure, financing, regulations, and skilling up the workforce with a focus on women and youth empowerment.

Other topics include building a financial future for women with fintech, integrating fintech to de-risk agriculture value chains, and Africa’s digital renaissance.

The discussions, views, and solutions generated during the summit will be compiled into recommendations, collaborative deals, progressive policies, and projects aimed at unlocking Africa’s fintech and economic potential.

These outcomes will be shared with leaders in the finance, policy, and digital technology sectors for implementation.

Through this coordinated effort, the Summit will support the development of creative solutions made especially to handle Africa’s unique problems and take advantage of its wealth of prospects.

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