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Lack of investments forcing local Fintech businesses to collapse - BOG Governor

Governor of the Bank of Ghana (BOG), Dr. Ernest Addison, has raised concerns over the dwindling fortunes of local fintech businesses due to inadequate investments.

Governor of the Bank of Ghana (BOG, Dr. Ernest Addison,

Speaking at the opening ceremony of the 3i Africa Summit held at the Accra International Conference Centre on Monday, May 13, 2024, Dr. Addison underscored the transformative impact of technology on global affairs, particularly in the financial sector.

According to him there is the urgent need for Africa to accelerate its digitalization agenda through innovation, investment, and impactful policies to drive economic growth.

Dr. Addison highlighted Africa's unique advantage in the digital race, citing its youthful population, high mobile phone penetration, and the proliferation of homegrown fintech solutions. However, he cautioned that the lack of necessary investments could impede innovation and hinder the scalability of fintech solutions across the continent.

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"While these are commendable, it is important to note that lack of requisite investments in African FinTechs could slow the pace of innovation and scalability of solutions in achieving the desired impact of a digitised Africa. The general lack of investor visibility is a major challenge for most local FinTechs. Without sufficient capital, brilliant ideas, and prototypes of FinTech startups solutions with the potential to address the diverse financial service needs fail to progress to production.

Addressing regulatory concerns, Dr. Addison stressed the importance of fintechs meeting compliance standards while navigating regulatory requirements.

He said there is the need to bridge the information gap between investors and fintech startups to stimulate growth in the payment ecosystem.

The 3i Africa Summit, themed "Unleashing Africa's FinTech and Digital Economic Potential," aims to foster collaboration among diverse stakeholders to drive innovation in the region. Organized by the Bank of Ghana (BoG) and the Development Bank Ghana (DBG), in partnership with Elevandi, established by the Monetary Authority of Singapore, the summit features esteemed speakers such as President Akufo -Addo , Wamkele Mene, Secretary-General of the African Continental Free Trade Area Secretariat.

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With over 150 Chief Executives and Senior Executives of fintechs and financial institutions participating, including Serigne Dioum, CEO of MTN Group Fintech, and Dr. Patrick Saidu Conteh, CEO of Africa Fintech Network, alongside Saurav Bhattacharya, the summit seeks to drive innovation momentum and promote collaboration in Africa's fintech sector.

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