Rwanda’s fintech sector has emerged as one of the fastest-growing industries following a significant uptick in digital transactions.
This is according to the 2024 Monetary Policy and Financial Stability Statements report by the National Bank of Rwanda. The report highlights a substantial transfer increase across various digital platforms, indicating the sector’s burgeoning success.
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Rwanda’s Remarkable Surge in Digital Transactions
Mobile payments witnessed a remarkable surge, with transfers increasing by 57% to 603 million, accompanied by a 49% rise in value to FRW 13,001 billion. Similarly, mobile banking transactions and transfers via Internet banking recorded significant upticks, demonstrating the increasing reliance on digital financial services in Rwanda.
To further foster the growth of the fintech landscape, the National Bank of Rwanda has established a regulatory sandbox. This platform allows fintech innovators to test their products while keeping regulators and policymakers updated on the latest developments driving financial services innovation.
Rwanda’s recognition as a leading innovation hub in Africa was reaffirmed in the Global Financial Centres Index (GFCI 35). Additionally, the country’s success in attracting venture capitalists and private equity investors, with a remarkable $38 million raised in startup funding in 2023, underscores its commitment to nurturing a vibrant innovation and entrepreneurial ecosystem.
How Kigali Ascends in Global Rankings
Kigali, the capital city, has surged in global rankings, now standing at 67th place globally and retaining its position as the second in sub-Saharan Africa (SSA). Notably, Kigali’s fintech ranking soared by 18 places, positioning it at 62nd globally and second in Africa after Casablanca.
A proactive strategy underpins the ascent of Kigali as a premier financial and technological hub. This strategy involves investing in robust infrastructure, ensuring widespread access to affordable, high-quality internet, overcoming regulatory hurdles, and developing cutting-edge facilities.
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Rwanda has attracted significant players and funds such as Katapult, Virunga Fund, and the recently introduced Timbuktoo Africa Fund. These initiatives complement the Rwanda Innovation Fund’s endeavours by providing increased access to capital and technical support, thereby propelling the development of emerging startups.
Rwanda’s fintech sector’s remarkable growth and Kigali’s ascent as a global innovation hub underscore the country’s commitment to fostering technological innovation and entrepreneurship. With supportive regulatory frameworks, strategic investments, and a thriving startup ecosystem, Rwanda is poised to continue its trajectory as a leading destination for tech-driven enterprises.