The Governor of the Bank of Ghana, Dr. Ernest Addison, has identified the lack of requisite investments in African FinTechs as a hurdle that could slow the pace of innovation and scalability of digital solutions in Africa.

He, therefore, underscored the urgent need for Africa to accelerate its digitalisation efforts by nurturing homegrown financial technologies across the continent while stressing the importance of prioritising innovation, investment and impactful policy to propel economic growth and development through digitalisation.

“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,” he said.

Dr. Ernest Addision disclosed this at the opening of the ongoing 3i Africa Summit jointly organised by the Bank of Ghana (BoG), Development Bank of Ghana (DBG), and the Monetary Authority of Singapore (MAS), through its subsidiary Elevandi.

Youthful advantage

The BoG Governor highlighted Africa’s position, citing its rapidly expanding and tech-savvy youthful population, widespread mobile phone usage, improving network accessibility, and the presence of indigenous fintech solutions.

He pointed to the global digital era, especially with artificial intelligence, which should create a sense of urgency for the continent to accelerate the digitalisation agenda through innovation, investment, and impactful policies to boost economic growth and development.

“These factors have provided fertile grounds to accelerate the digitalisation agenda across the continent,” Dr. Addison said.

He also highlighted regulatory challenges facing fintech startups, emphasising the importance of navigating regulatory requirements and meeting compliance standards.

“The regulatory aspect is another reason not to ignore the issue of deficient findings in the fintech space. Fintech should have the ability to navigate regulatory requirements and meet complaint standards which we all agree are non-negotiables, especially, in Africa’s financial industry, hence the need to address the information gap between the investors and fintech startups to stimulate the payment ecosystem,” he added.