The African Union Commission has partnered with AfricaNenda
to accelerate the expansion of digital public infrastructure and ensure
universal access to digital financial services for all Africans. This partnership aims to create an advocacy program that supports the Digital
Transformation Strategy for Africa (2020-2030), harmonizes policies in Africa,
and helps implement the strategy's roadmap with a specific focus on Inclusive
Instant Payments Systems in Africa.
It also aims to provide access to the formal financial system for over
400 million financially excluded adults in Africa. This gap has exposed millions of people who are heavily reliant on
cash or informal providers for their financial needs, which is costly, and risky
and leaves them vulnerable to economic instability. The partnership will also
enhance collaboration with governments, central banks, regional organizations,
the private sector, and development institutions.
The AU
Commission and AfricaNenda convened a High-Level Forum on Inclusive
Instant Payments Systems in Africa aimed at "Advancing innovative
solutions to accelerate the expansion of Digital Public Infrastructure."
The forum
was equally timely as Africa makes progress in intra-African trade through
the African
Continental Free Trade Area where the digital financial services are
increasingly boosting economic activities, transactions efficiency, reduced
transactions costs, and enhanced the participation of women and youth in trade
and investments.
Speaking at
the session, the African Union Commissioner for Economic Development, Trade,
Tourism, Industry and Minerals, H.E. Amb. Albert Muchanga highlighted the
importance of the new partnership stating, "By
leveraging the power of technology, we remove key obstacles that prevent
financial inclusion. By offering access to digital financial services for all,
we also help people and communities to fully participate in the economy,
thereby benefitting from their talents and resilience. By coming here today, we
are also affirming that to achieve our goal of providing digital financial
services to every African, we must work together.
The stakeholder base is broad: Member
States, the private sector, civil society organizations, academia, labour,
youth, women, and, and among others, development cooperation partners. By
collaborating and coordinating efforts, we can design and implement high impact
policies, and broaden access to innovations."
On his part
the CEO of AfricaNenda, Dr. Robert Ochola restated the institution's focus to
strengthen relationships with national, regional, and continental stakeholders
to support the development of inclusive instant payment systems in Africa. "Working with the Commission is a boost
to our scale and reach. We are committed to continue striking strategic
partnerships across the ecosystem to advance financial inclusion to drive
sustainable and inclusive development in the continent. We are confident that
our joint efforts with the African Union Commission will help accelerate access
to digital financial services by all people in Africa".
Both
principals underscored the urgency to address the digital deficits and
vulnerability by unlocking the potential of inclusive digital financial
services on the continent. This is through the implementation of inclusive
instant payment systems across Africa, and by removing barriers to the access
to digital payments to mobilize the continent's digital financial ecosystem for
inclusive growth.
In a world
increasingly reliant on digital connectivity, access to financial services
remains a crucial determinant of economic empowerment and social development.
Unfortunately, millions of Africans are excluded from the formal financial
system, trapped in a cycle of poverty and limited opportunities, principally
because of limited investments in digital infrastructure especially in our
rural areas. Presently, digital transformation is expanding to almost all
economic sectors altering local job markets. Over 500 African companies provide
technology-enabled innovation in financial services or fintech. With over 640
tech hubs active across the continent.
