BoG calls for increased funding to propel fintech and innovation growth

Bank of Ghana Governor, Dr. Ernest Addison, has called for increased funding to propel fintech and innovation growth in Africa and particularly Ghana.

Speaking at the press launch of the 3i Africa Summit on February 26, the BoG Governor said Africans have a unique opportunity to take advantage of the digitization space as many youths are tech-savvy along with an increasing mobile phone penetration rate.

“These immense opportunities provide fertile grounds for accelerating digitalisation. And while these are commendable, it is important to highlight the potential negative impact a lack of requisite investments in African FinTechs could have on the innovations and scalability of solutions in achieving the desired impact,” he noted.

“To a great degree, the lack of funding can significantly stunt the growth of the FinTech movement in several ways. Without sufficient capital, brilliant ideas, and prototypes of FinTech startups solutions with the potential to address the diverse financial service needs have failed to progress to production,” the BoG Governor continued.

Dr. Addison added that this lack of funding could also hinder fintech companies’ ability to navigate regulatory requirements and meet compliance standards which are non-negotiables, especially in Ghana’s and Africa’s financial industry.

“From the regular engagement with FinTech startups as part of the Bank’s innovation nurturing role, it has emerged that most of these nascent companies generally lack investor visibility. Hence, the need to address the information gap between investors and FinTech startups to stimulate the payment ecosystem.

"This will help unleash the full potential of FinTech startups to contribute meaningfully to the economic development of the African continent,” Dr Addison explained.

The 3i Africa Summit is a fintech festival to drive Innovation, Investment and Impact for Africa’s Fintech and Financial Services sectors.

The initiative has been jointly developed by the Bank of Ghana with the Monetary Authority of Singapore, Development Bank Ghana, and supported by Elevandi to spearhead transformative discussions, address key growth and investment opportunities.

It will also explore how market players in the financial ecosystem are leapfrogging in digital transformation and pioneer the much-needed dialogues and actions to drive Africa’s Fintech growth.

The summit, which is taking place in Ghana from May 13 to May 15, 2024 at the Accra International Conference Centre is anchored on the theme: “Unleashing Africa’s Fintech and Digital Economic Potential.”

MA/NOQ