The African Development Bank (AFDB) has offered a $525,000 grant to support the African fintech Network Hub project.
The grant according to the AFDB will boost the fintech industry on the African continent.
Speaking at the signing ceremony, the Director General of AFDB Mr. Lamin Barrow disclosed that the grant of $525,000 will support the operationalization of an online digital hub to serve as a repository of knowledge for fintech entities across the continent and globally.
In his words, “The Digital Hub, which is to be delivered through a strategic partnership between the Africa fintech network and Cenfri, will help to strengthen the fintech ecosystem across Africa and boost the industry’s competitiveness. The grant is funded by the Africa Digital financial inclusion facility, launched by the AFDB group, alongside its partners, such as the Bill and Melinda Gate a foundation, the Ministry of Finance of Luxembourg, and Agence Française de Développment, among others”.
He further added that the event marked an important milestone in AFDB’s efforts to promote digital innovation and financial inclusion in African countries.
Investors King understands that the recent grant offered by the AFDB will go a long way to enhance coordination among African fintech associations, as well as improve investment opportunities and provide linkages for market access. This will be pivotal to fully unlocking Africa’s fintech potential and creating a digital economy.
Analysts estimate that Africa’s financial-services market could grow at about 10 percent per annum, reaching about $230 billion in revenues by 2025.
Industry leaders have disclosed that rather than a fintech disruption, the African continent is experiencing a fintech eruption, and local and international investors are taking notice. The continent fintech sector is emerging as a hotbed for investment, with average deal sizes growing and the proportion of fintech funding in Africa increasing over the past year, bringing jobs and growth to African economies.
With digital becoming a way of life in Africa, the stage is set for the next phase of fintech growth. African fintech and other stakeholders, including governments and investors, have an opportunity to consider how the sector can achieve sustainability over the long term.
