The
African Development Bank has signed a $525,000 grant agreement with Africa
Fintech Network (AFN) for the setup of the African Fintech Hub, an online portal
that will serve as a one-stop shop for all fintech activities in Africa.
In statement, it
noted that the Africa Digital Financial Inclusion Facility (ADFI) will provide
funding and technical assistance to the Africa Fintech Network to host and
manage the African Fintech Hub. The hub is a digital platform that will enable
fintech associations across Africa to pool resources and knowledge, strengthen
relationships and partnerships, as well as showcase the work of fintech on the
continent, including those which are female-led or owned.
The African
Fintech Hub will be delivered through a strategic partnership between AFN and
the Centre for Financial Regulation and Inclusion (Cenfri), which will provide
technical support in the development of the Hub, as well as promote research,
knowledge creation and other innovative initiatives.
Lamin Barrow,
Director General of the African Development Bank’s Nigeria Country Department,
underscored the importance of the Bank’s support to the project, saying it
would contribute to strengthening the fintech ecosystem in Africa, boost
competitiveness in the digital world, whilst leveraging partnerships.
“At the African Development Bank, we recognize that we
have a major role to play in helping to create a robust, efficient and
sustainable fintech ecosystem across the continent. We are accelerating the
delivery of our High 5 strategic priorities through our various innovative
interventions. These have helped improve access to digital infrastructure,
including Information and Communications Technology linkages to landlocked
countries and broadband internet services. The need to leapfrog barriers and
scale up inclusive digital financial solutions to accelerate economic
resilience across Africa has become even more urgent.”
The African
Development Bank, together with its partners, launched the Africa Digital
Financial Inclusion Facility to make catalytic investments in support of
innovative ideas such as the Africa Fintech Hub Project aimed at expanding
access and usage of digital financial solutions to meet the needs of all
Africans.
Dr. Segun Aina,
President of Africa Fintech Network, commended the Bank for supporting
the initiative.
“We are truly excited about this partnership with the
African Development Bank, and the possibilities of working in partnership with
Cenfri on multiple initiatives with fintech across Africa to further our mission
to drive Africa-led fintech solutions, stimulate information exchange, ideation
and the support and to promote innovative technologies within the financial
services sector across Africa and beyond. “
ADFI
Coordinator, Sheila Okiro, said the Bank,
through the partnership of the Africa Digital Financial Inclusion Facility, is
delighted “to support this project to strengthen the fintech sector, furthering
our work to leverage technology to contribute to closing the financial
inclusion gap and creating employment across Africa.”
Currently,
ADFI-supported projects are enhancing digital financial infrastructure and
regional interoperability through the development of payment systems and
infrastructure in Ethiopia and the ECOWAS region. Other projects are equipping
financial sector regulators with innovative technology to strengthen consumer
protection in Ghana, Rwanda and Zambia.
The Facility is
also supporting projects to enhance the deployment of digital micro-insurance
to smallholder farmers in Nigeria, Zambia and Kenya, as well as to build
capacity for cyber resilience and help to remove barriers to access to fintech
services across the continent.
Although
fintechs have great potential to contribute to digital financial inclusion
across the continent, the African fintech sector significantly lags behind
those in other regions such as Latin America and South-East Asia.
In 2019, AFN and
Cenfri conducted a survey that demonstrated the need to establish and
coordinate local fintech chapters, recruit new members, profile members’
achievements, link them to market access and investment opportunities, as well
as advocate on behalf of members to local and regional regulators.
The survey also
shows that less than 15% of fintechs are owned by women. Based on the result of
the survey, AFN will develop and apply gender indicators and lens as a core
part of the project implementation.
