The Minister for Finance, Dr. Mohammed Amin Adam, has disclosed that Ghana is a frontrunner in fintech innovation across the continent.
The minister made this known in his welcome address at the opening ceremony of the 3-day 3i Africa Summit under the theme, “Unleashing the FinTech and digital economic potential of Africa.” in Accra, on Monday, this week.
Dr. Mohammed Amin Adam underscored the significance of the fintech sector in driving economic growth and societal progress across Africa.
He emphasized the potential of fintech to enhance financial inclusion, empower individuals, and boost participation in the formal economy, particularly for those with limited access to traditional financial services.
The minister elaborated on the diverse landscape of fintech innovations, ranging from mobile payment platforms to blockchain-enabled networks, and their transformative impact on financial services.
He emphasized the need for strategic alliances and collaborations among stakeholders to realize the full potential of fintech in Africa.
“Realising the full potential of fintech and effecting substantive change necessitates concerted efforts and strategic alliances among various stakeholders, including governments, regulatory bodies, financial institutions, technology firms and civil society organizations”, he said.
The minister also highlighted Ghana’s progress in nurturing a vibrant fintech ecosystem, acknowledging initiatives by the Bank of Ghana and incubators like Ghana Tech Lab and MEST Africa.
He emphasised the importance of SMEs in driving growth and job creation, outlining strategies to enhance SME financing through fintech solutions.
“This brings me to the importance of SMEs in propelling growth and job creation and a key challenge they face. Low financing to SMEs continues to be a critical barrier to the acceleration of growth and development on our continent. In Ghana, SMEs constitute 92% of manufacturing, 70% of growth and provide 80% of jobs,” he emphasised.
Dr. Ernest Addison, Governor of Bank of Ghana on his part highlighted the transformative impact of technology on global life, particularly in the financial sector, where advancements in payment ecosystems have reshaped business transactions and customer behavior.
He said “the rapid evolution of technology has impacted all facets of life globally. For the financial sector, actualisation of novel technologies in the payment ecosystem has revolutionised business transactions, reshaped customer behaviour, and redefined the nature of commerce.”
Dr. Addison mentioned Africa’s advantageous position in the digital era, citing factors such as a young and tech-savvy population, high mobile phone penetration, and the rise of homegrown FinTech solutions.
However, Dr. Addison complained about the challenges hindering the full realization of Africa’s digital potential, notably the lack of adequate investments in FinTech startups and regulatory hurdles.
“It is important to note that lack of requisite investments in African FinTechs could slow the pace of innovation and scalability of solutions in achieving the desired impact of a digitised Africa
“The general lack of investor visibility is a major challenge for most local FinTechs. Without sufficient capital, brilliant ideas, and prototypes of FinTech startups solutions with the potential to address the diverse financial service needs fail to progress to production,” he bemoaned.
He stressed the need for collaboration among stakeholders to address these challenges and foster conducive environment for FinTech innovation and scalability.
Dr. Addison urged participants to engage in constructive dialogue, exchange ideas, and explore new opportunities for investments and partnerships.
“Discussions on the use of Fintech for inclusion should remain paramount to ensure that the benefits of technological advancements are accessible to all segments of society. By harnessing the power of financial technology, we can bridge the gap and empower marginalised communities, advancing towards a more inclusive and prosperous future,” he added.
3i Africa Summit
The summit, organized by Development Bank Ghana in collaboration with the Monetary Authority of Singapore’s subsidiary, Elevandi, is dedicated to unleashing Africa’s potential in the digital realm under the theme “Unleashing the FinTech and digital economic potential of Africa.”
The summit’s goal is to facilitate discussions on digital technology, policy frameworks, and investment opportunities to propel Africa’s economic transformation. Concrete initiatives and partnerships are expected to emerge from the summit to enable affordable cross-border payments, empower FinTechs through sound regulatory environments, advance digital infrastructure, and bridge financing gaps for SMEs and creative industries.
Key sessions at the summit include discussions on women in tech, environmental, social, and governance (ESG) principles, AgriTech’s role in agricultural transformation and insights from visionary leaders at the Founders’ Peak.
The 3i Africa Summit represents a pivotal moment for Africa’s digitalization journey, with a focus on harnessing technology to drive inclusive growth and prosperity.
