The African Development Bank (AfDB) has signed a $525,000 deal to support Africa Fintech Network’s (AFN) digital hub concept.
At the signing ceremony in Abuja, Lamin Barrow, Director-General of the AfDB’s Nigeria national section, stated that the project would improve fintech in Africa. He claims;
Barrow went on to say that the $525,000 would “help in the operationalization of an online digital hub to act as a repository of knowledge for fintech firms across the continent and beyond.”
Thanks to a strategic partnership between the Africa Fintech Network and Cenfri, the Digital Hub will help to strengthen Africa’s fintech ecosystem and boost the sector’s competitiveness.
The funding is sponsored by the AfDB Group and the William and Melinda Gates Foundation through the ADFI.
Luxembourg, France, and the Agence française de développement will join in 2019, 2020, and 2022.
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Strategic cooperation between the Africa Fintech Network and Cenfri will deliver the Digital Hub.
Cenfri and AFN’s African Fintech Radar initiative surveyed 100 fintechs in 17 African countries and found that African fintechs struggle with markets, funding, regulation, and product development for financially underserved market segments, undermining their contribution to a more inclusive digital finance ecosystem.
Fintech growth is aided by several programmes. Investors still focus on fintech industries that already exist, and most venture capital investments in Africa are small and geared more towards seeding than growth. Fintechs aren’t used to changing policies that affect their jobs.
AfDB’s support for financial inclusion and digital innovation in Africa changed after the occurrence. Barrow used the 2021 Global Findex Survey to show that 49% of Africans don’t have access to the formal economy and its benefits.
Fintech’s powerful, easy-to-use, and successful digital financial solutions are crucial to bridging the continent’s financial gap. More fintech businesses are emerging as digital disruptions continue in finance.
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These companies use technology to offer payment, lending, savings, financial literacy, and financial infrastructure services. He says that improves efficiency, service, and cost.
Financial inclusion is crucial for economic stability and freedom, especially for marginalized groups. He believes it’s more crucial than ever to remove barriers and create digital banking options for everyone to boost Africa’s economy.
Dr Akinwumi Adesina, President of the African Development Bank, says that investing in innovation and smart digital growth can overcome the barriers to financial inclusion and increase economic opportunity for all.
The Hub will allow African fintech groups to share expertise, strengthen contacts, and showcase their ideas and impacts, particularly those of women-led fintech enterprises.
The AFN Hub’s usefulness as a one-stop knowledge resource was driven by a thorough needs assessment. African fintech groups can cooperate and improve market access and investment prospects through effective lobbying with key public and commercial entities.
AFN President Segun Aina thanked AfDB for its help and promised to complete the project.
We’re glad AfDB is leading this unique effort. The AFN-AfDB partnership is equal. He says, “We look forward to building on this great collaboration because there is still a lot to do to bring the promise of digital inclusion to Africa and help it become the Africa we want.”