By: Joseph Inokotong – Abuja
The African Development Bank (AfDB) has signed a grant agreement with the Africa Fintech Network (AFN) to support the Africa Fintech Hub project, an online portal that will provide a one-stop shop for all fintech activities in Africa.
At the signing ceremony on Tuesday in Abuja, Mr. Lamin G. Barrow Director General
African Development Bank, Nigeria Country Department said the $525,000 grant will support the operations of an on-line digital hub to serve as a repository of knowledge for fintech entities across the continent, and globally.
He noted that the Digital Hub, which is to be delivered through a strategic partnership between the Africa Fintech Network and Cenfri, will help to strengthen the fintech ecosystem across Africa, and boost the industry’s competitiveness.
Mr. Barrow said, “This grant, in the amount of $525,000, will support the operationalization of an on-line digital hub to serve as a repository of knowledge for fintech entities across the continent, and globally”.
The grant is funded by the Africa Digital Financial Inclusion Facility (ADFI), launched by the African Development Bank Group, together with its partners, the Bill & Melinda Gates Foundation, Ministry of Finance of Luxembourg, and Agence Française de Développement in 2019, with the Ministry of Finance and Economy of France and the Women Entrepreneurs Finance Initiative (We-Fi) joining in 2020 and 2022, respectively.
According to Mr. Barrow, the event marked an important milestone in the AfDB’s efforts to promote digital innovation and financial inclusion in African Countries.
“Whilst great progress has been made to bridge the financial inclusion gap in African countries, according to the 2021 Global Findex Study, 49% of Africans are excluded from the formal economy and the benefits it brings.
“Fintechs provide powerful, readily available and effective digital financial solutions to help bridge the financial inclusion gap. Africa’s fintech sector also has a strong potential to contribute to job creation, given the strong presence of the youth in these industries”, Mr. Barrow stated.
With the current digital disruption in the financial sector, Mr. Barrow said more fintech startups are coming to the fore as they are leveraging technology to provide innovative financial services, including payment, lending, savings, financial literacy and financial infrastructure services that result in greater efficiency, better service provision and lower costs.
He however pointed out that despite the potential of fintechs to contribute to digital financial inclusion across the continent, the African fintech sector significantly lags behind those in other regions such as Latin America, South and South-East Asia.
Dr Segun Aina President Africa Fintech Network (AFN) in his opening remarks said the AFN considered the project as a launching pad to greater opportunities as it partners with the AfDB to deliver the Africa Fintech Hub.
He said on completion, the Hub will contribute significantly to the vision of catalysing the digital economy in Africa, as espoused in the mantra – innovating together and advancing as one.
“The Hub will be delivered through a strategic partnership between AFN and Cenfri, with Cenfri providing the technical support in innovations related to the Hub, research and associated knowledge creation and related initiatives”, Dr. Aina explained.
He thanked the AfDB management under President Dr Akinwumi Adesina, for all the transformational initiatives aimed at promoting the development of the African continent and for believing in and recognising the AFN as the voice of the fintech ecosystem in Africa.
Dr. Aina pledge the AFN’s commitment to making the project succeed, noting that “we will be committing resources and dedicating a substantial portion of our board and management time to directly working on the project”.
The establishment of the Africa Fintech Hub will enable fintech associations across Africa to pool knowledge, strengthen partnerships and showcase their innovations and impact, including from female-led or owned fintech enterprises, and the AfDB stressed that it is committed to the partnership with the Africa Fintech Network to fully unlock Africa’s fintech potential and create a digital economy.
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