In an effort aimed at propelling growth within the Fintech sector into a new era of growth, Dr. Ernest Addison, the Governor of the Bank of Ghana, has revealed that plans are set for the establishment of a Fintech Innovation Fund.
The announcement was made during the launch of the 3i Africa Summit, a collaborative initiative by the Bank of Ghana, the Monetary Authority of Singapore, Development Bank Ghana, and supported by Elevandi, set to be a catalyst for transformative discussions.
Highlighting the impact of the lack of funding, the governor said: “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 start-ups solutions with the potential to address the diverse financial service needs have failed to progress to production.”
Dr. Addison further emphasised that the Fintech ecosystem is as strong as it members, stating: “A lack of funding could ultimately impact a Fintech’s ability to attract and retain premium talent.”
He expressed the significance of the government’s role in fostering innovation, stating: “Most importantly, the government will establish an innovation fund to promote the development of the Fintech industry. The 3i Africa Summit will be a major catalyst for the promotion and innovation in financial service; which is why we encourage the participation of all relevant stakeholders within the ecosystem.”
Affirming this commitment, Vice President Dr. Muhammadu Bawumia emphasised the support for local start-ups, recognising the abundance of home-grown digitalisation initiatives. “What is clear is that most of the digitalisation we are seeing is home-grown, which is driven by local IT firms and businesses. The innovation is here; but usually, they lack the capital to take these innovations to make the needed impact. So we are going to be supportive of all the start-ups and stakeholders with the innovation fund. We must join hands and cooperate to achieve this,” said the Vice President.
The announcement aligns with the Boston Consulting Group(BCG) and QED Investors (QED) Global Fintech Report 2023, projecting Africa’s Fintech sector revenue to grow 13 times by 2030, reaching approximately US$65billion. This growth trajectory highlights immense potential, prompting the need for strategic dialogues to achieve the projected goals.
The 3i Africa Summit, themed ‘Unleashing Africa’s Fintech and Digital Economic Potential’, is set to be a pivotal event in achieving these objectives. Scheduled to take place in Ghana from the 13th to 15th of May 2024 at the Accra International Conference Centre, the summit will bring together various stakeholders, including heads of state, policy-makers, investors, and leaders from the financial services sector across Africa and beyond.
Designed as a three-day global symposium, the summit aims to envision the future of Africa’s financial landscape. It will focus on propelling the tech-enabled digital economy, spotlighting groundbreaking innovations and unlocking investments in the Fintech sector to catalyse broader economic transformation.
The event’s dual mission encompasses not only showcasing innovations but also fostering global partnerships for sustainable development. With a diverse array of participants, including banks, investment firms, Fintech companies, policy-makers and regulators, the summit seeks to facilitate discussions, investments and strategic alliances to nurture the flourishing African digital economy and Fintech sector.
Source: Ghanaweb