President Paul Kagame has said that creating an enabling business environment and harmonised regulations should be a priority to help propel FinTech industry growth on the African continent. He was speaking at the official opening of the second edition of Inclusive Fintech Forum (IFF) held in the capital Kigali on Tuesday, February 25. The event brought together over 3,000 participants, including government officials, policymakers, regulators, technology experts, and investors, among others. Organised by Kigali International Financial Centre (KIFC), Singapore’s Elevandi, and the National Bank of Rwanda (NBR), the forum features topics such as the role of industry associations in supporting fintech ecosystems, equipping African SMEs for digital ecosystem, unlocking investment in fintech for financial inclusion, AfCFTA vision for digital trade, modernizing insurance delivery in Africa, credit gap on the continent, among others. ALSO READ African innovators tipped to drive digital trade under AfCFTA In his address, Kagame noted that with the continent’s young tech savvy population, Africa can compete with the rest of the world and successfully innovate, as fintechs continue to dominant in the startup ecosystem. “In recent years, the number of fintech companies in Africa has also tripled. These enterprises, big and small, are fundamentally reshaping our financial services sector. We see this, especially with mobile money and remittance services.” According to a recent study, fintech revenues in Africa are expected to reach $40 billion by 2028. Africa's fintech sector has shown resilience, attracting significant investment and global interest. However, the sector faces challenges in regulatory landscapes, building consumer trust, and developing sustainable business models as it matures. With an example of Rwanda’s strategic investments in digital infrastructure and skills, the Head of State noted that “moving forward, creating an enabling environment for business to scale should be our number one priority, we need a harmonized regulatory landscape and we must come together to combat cybercrime and fraud.” He said that tapping into public-private partnerships and harnessing the power of artificial intelligence should be leveraged to unlock opportunities. While technology presents enormous potential for Africa’s economic growth, Kagame said that the continent is experiencing brain drain with many of the skilled developers leaving Africa to work abroad. He noted that this not entirely their problem, as leaders are partly to blame. Looking at financial inclusion as a challenge, particularly women in the informal economy, he affirmed that it is an invitation to put available resources to better use and support each other. “Taking ownership of our development is not something we can ask others to do for us. Business founders also need to do their part and gain confidence of investors and above all, ask yourself why you, and not anybody else, is best placed to solve a problem you have found.” Kagame expressed confidence at the trajectory of digital development and called on everyone to work as one team to build a more connected future. Wamkele Mene, the Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, said he came to Rwanda six times in 2024 alone to be inspired in a country that gets things done. He highlighted that the African Heads of State have adopted two AfCFTA Protocols for inclusion. These are the Protocol for Women and Youth in Trade, and the Protocol on Digital Trade. He said: “Africa is indeed becoming a major global fintech hub, showcasing rapid growth and promising future potential.” With a fairly two per cent compound annual growth rate, it set to be the fastest growing continent in fintech revenue, he said, noting that “this projection suggests to us that by the 2030, African fintech market is anticipated to attain approximately over $65 billion.” “Our objective is to ensure that this moderate success we have made as a continent, that all African countries have the opportunity to evolve and become financial technology hubs in order to accommodate our objective of inclusive growth and inclusive opportunities, particularly, as we seek to accelerate the implementation of the AfCFTA.” Alvin Tan, the Minister of State of Trade and Industry and Board member of Monetary Authority of Singapore, announced a new venture investment arm of Global Finance and Technology Network's (GFTN) to invest in fintech and sustainable technology, aligning financial advancements with environmental consciousness. This was coupled with the launch of a project aimed at shaping Africa’s next generation foundational digital public infrastructure by harnessing cutting-edge digital technology to drive the needed transformation. The project will identify gaps in existing pavement systems, particularly cross-water pavements. It aims to build system enhancement specifications, coordinate implementation of roadmaps, and provide policy inputs for cross-border payment governance and operational matters. It will develop governance and scheme rules for cross-border transfers, including discrete resolution, liability coverage, system level agreements and settlement of foreign exchange.
