Lack of investment in African fintechs could slow innovation - BoG Governor

The Governor of the Bank of Ghana, Dr. Ernest Addison, has championed the need for critical investment, particularly among African fintechs.

He believes that this is crucial in order not to slow the pace of innovation and scalability of solutions in achieving the desired impact of a digitized Africa.

Speaking at the maiden 3i Africa Summit in Accra on Monday, May 13, Dr. Addison expressed concern about the general lack of investor visibility, which has been a major challenge for most local fintechs.

“Without sufficient capital, brilliant ideas, and prototypes of Fintech startup solutions with the potential to address diverse financial service needs fail to progress to production,” he noted.

He also mentioned the regulatory aspect, which is essential in order to tackle the issue of deficient funding in the fintech space.

“Fintechs should have the ability to navigate regulatory requirements and meet compliance standards, which we all agree are non-negotiable, especially in Africa’s financial industry. Hence, the need to address the information gap between investors and Fintech startups to stimulate the payment ecosystem,” Dr Addison said.

The BoG Governor pointed out that discussions at the summit should center on inclusion in the fintech sector, which he believes remains paramount to ensuring 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 marginalized communities, advancing towards a more inclusive and prosperous future,” he concluded.

The 3i Africa Summit aims to build greater momentum and traction for Africa's digital finance agenda.

The three-day summit will facilitate important conversations and strategic alliances to support the growing African digital economy and fintech sector while promoting innovative solutions.

It is being organized by the Bank of Ghana (BoG), Development Bank Ghana (DBG), and the Monetary Authority of Singapore (MAS) through its subsidiary, Elevandi.



MA/AE