Africa Fintech Network receives $525,000 to build Fintech Hub
The African Development Bank has signed a $525,000 grant agreement with the Africa Fintech Network (AFN) to set up the Africa Fintech Hub, an online portal that will act as a one-stop shop for all fintech activities in Africa.
The agreement was signed on 4 April 2023.
The Africa Digital Financial Inclusion Facility (ADFI) will provide funding and technical assistance to the Africa Fintech Network to host and manage the African Fintech Hub. The hub is a digital platform that will enable fintech associations across Africa to pool resources and knowledge, strengthen relationships and partnerships, as well as showcase fintech work on the continent, including those led or owned by women.
The African Fintech Hub will be delivered through a strategic partnership between AFN and the Center for Financial Regulation and Inclusion (Cenfri), which will provide technical support in the development of the Hub, as well as promote research, knowledge creation and other innovative initiatives.
Lamin Barrow, Director General of the African Development Bank’s Nigeria country department, emphasized the importance of the bank’s support for the project, saying it would help strengthen the fintech ecosystem in Africa, increase competitiveness in the digital world, while leveraging partnerships.
“At the African Development Bank, we recognize that we have an important role to play in helping to create a robust, efficient and sustainable fintech ecosystem across the continent. We are accelerating the delivery of our High 5 strategic priorities through our various innovative interventions. These have helped to improve access to digital infrastructure, including information and communication technology links to landlocked countries and broadband internet services. The need to leapfrog barriers and scale up inclusive digital financial solutions to accelerate economic resilience across Africa has become even more urgent.”
The African Development Bank, together with its partners, launched the Africa Digital Financial Inclusion Facility to make catalytic investments in support of innovative ideas such as the Africa Fintech Hub Project which aims to expand access and use of digital financial solutions to meet the needs of all Africans .
Dr Segun Aina, President of the Africa Fintech Network, commended the bank for supporting the initiative.
“We are really excited about this partnership with the African Development Bank, and the opportunities to work with Cenfri on several fintech initiatives across Africa to advance our mission to drive Africa-led fintech solutions, stimulate the exchange of information, ideas and support and to promote innovative technologies in the financial sector across Africa and beyond.”
ADFI Coordinator, Sheila Okiro, said the bank, through its partnership with the Africa Digital Financial Inclusion Facility, is delighted to “support this project to strengthen the fintech sector, advance our work to harness technology to help close the gap for financial inclusion and creating employment across Africa.”
Currently, ADFI-supported projects are improving digital financial infrastructure and regional interoperability through the development of payment systems and infrastructure in Ethiopia and the ECOWAS region. Other projects equip financial sector regulators with innovative technology to strengthen consumer protection in Ghana, Rwanda and Zambia.
The facility also supports projects to improve the distribution of digital microinsurance to smallholder farmers in Nigeria, Zambia and Kenya, as well as build capacity for cyber resilience and help remove barriers to access to fintech services across the continent.
Although fintech has great potential to contribute to digital financial inclusion across the continent, the African fintech sector lags significantly behind those in other regions such as Latin America and Southeast Asia.
In 2019, AFN and Cenfri carried out a survey that showed the need to establish and coordinate local fintech departments, recruit new members, profile the members’ achievements, link them to market access and investment opportunities, as well as advocate on behalf of the members to local and regional regulators.
The survey also shows that less than 15% of fintechs are owned by women. Based on the results of the survey, AFN will develop and apply gender indicators and lens as a core part of the project implementation.
