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How to Accelerate Financial Inclusion in Africa: The Road Ahead

Updated: Oct 29, 2018

Fintech leaders underscore the importance of collaboration & partnerships…

Innovators are counting down the days to the second annual African Fintech Unconference at Spier Wine Farm outside of Cape Town next week. Ahead of the event, the co-conveners, Nomanini, MFS Africa and Tugende, share more about why financial inclusion is still a work in progress and how technology and business led innovation are crucial to moving the needle. 

Over the past decade, the progress made within financial inclusion has emerged as one of Africa’s great success stories. According to the recently published World Bank Global Findex survey, financial inclusion in Sub-Saharan Africa has ‘increased dramatically’ from 23% in 2011 to 43% in 2017. Notably, findings published by the International Finance Corporation (IFC) show that Africa is home to more digital financial services deployments than any other region in the world - with almost half of the nearly 700 million individual users worldwide.

Yet as Tugende CEO Michael Wilkerson points out, “financial inclusion is never going to be something you can declare victory on.”

Indeed, even if every person has a bank account or a mobile wallet, they need to have actual funds to put there. This is one of the pieces of the puzzle that innovators like Tugende, a for-profit social enterprise that finances income generating assets to proven entrepreneurs, are working to solve.

“We see financial inclusion on the cusp of making even greater strides because of an improvement in infrastructure, and this enabling infrastructure is almost entirely private sector driven,” says Wilkerson. “For example, we are seeing interoperability between digital wallets, and the revolution in cloud software allows a nimble company like Tugende to service thousands of financing customers without having to get a multimillion-dollar core banking platform. But at the end of the day, none of that matters until people can actually use those tools to improve their lives. Those use cases for average consumers are emerging, but there’s a long way to go.”

‘Exponential Specialisation’

As the underlying IT infrastructure enables fintech and financial services players to provide new solutions, companies are beginning to specialise in certain areas.

“The financial inclusion space is now becoming a lot more sophisticated, and there are pieces of the value chain that are ‘hidden’ from consumers or the average lay person that are now benefiting and progressing financial inclusion,” says Vahid Monadjem, CEO of Nomanini, an enterprise payments platform provider that optimises transactions in the informal retail sector. “Most people have the picture of a P2P M-Pesa transfer, but there are companies like MFS Africa which are connecting the different ‘islands’ of financial inclusion. Overall, we are seeing exponential specialisation of fintech in different areas where I think there will be a lot more progress.”

Dare Okoudjou, founder and CEO of MFS Africa, echoes this sentiment, noting that with more than two million agents now supporting over 200 million digital store of value, the core foundation for financial inclusion has been created. This foundation is supported by pioneers like MFS Africa, which connects mobile money schemes to each other and to money transfer organisations, merchants, banks and other financial institutions - enabling money remittances to and from mobile money accounts.

“Now that we have the first layer of financial inclusion, supported by a growing agent network, it opens up opportunities for more use cases such as savings, lending and some form of insurance (health and life),” says Okoudjou. “The question has now become: how do you successfully build and scale these types of services on top of this first layer?”

Collaboration is Key

In trying to piece together the complex puzzle of financial inclusion, innovators and leaders across every sphere have to learn to collaborate and work together. According to Nomanini’s Monadjem, there is a pervasive mentality that everybody is a competitor – which prevents open discussion.

“There needs to be many more sharing partnerships and connections to do so,” he says. “We should speak to more of our fellow fintechs, and even non-adjacent fintechs, because let’s face it…it’s a tough gig!”

Wilkerson of Tugende reinforces this view, highlighting that companies actually learn more by openly discussing challenges and opportunities with each other than by trying to figure things out by themselves. This is why even companies with completely different revenue models and services should be looking for collaborative outlets such as African Fintech Unconference.

“For example, Tugende doesn’t have a digital product, but we are very happy to be part of AFU because technology is instrumental to our mission of helping people to better their economic future,” he adds. “At the end of the day, execution on the ground matters more – and you cannot patent that. So you might as well learn from people who are also pursuing the same vision, but in different ways.”

For more information on AFU18 and how to register, visit

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1 comentário

22 de fev. de 2020
  1. Anthony Constantinou share some important tips here:

  2. Avoid nervousness.

  3. Be there with confidence.

  4. Take notes. ...

  5. Ask questions. ...

  6. Stay energetic.

  7. Be on track.

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