Vice President Dr Mahamudu Bawumia has said that digital transformation is an inevitable necessity, an appropriate system.
He also said it is a flexible response to emergencies, challenges and needs, and a means used to achieve economic and social development.
Dr Bawumia said this when he performed the Press Launch of the first 3i Africa Summit – under the theme Innovation, Investment, Impact – with a reminder to all stakeholders that a major key to Africa’s digital revolution is fintechs, who provide the ecosystem necessary for innovation and the means to pay for it on Monday February 26.
He said such Summits as 3i provide important opportunities for collaboration and peer-learning, bringing together all the stakeholders and players to brainstorm and think through how we leapfrog and transition Africa into the digital revolution.
The flagbearer of the New Patriotic Party (NPP) stressed “Digital transformation is an inevitable necessity, an appropriate system, a flexible response to emergencies, challenges and needs, and a means used to achieve economic and social development. What is clear in the digitalization journey thus far is that most of the digitalization that we are seeing is homegrown.
“In recognition of this, the Government will be setting up a Fintech Innovation Fund to support startups and other fintechs.”
For his part, the Governor of the Bank of Ghana Dr Ernest Addison said that Ghana and the world have witnessed a remarkable shift with the rapid emergence and evolution of financial digitalization and transactions.
The actualization of novel technologies in the payment ecosystem has revolutionized business transactions, reshaped customer behaviour, and redefined the nature of commerce, he said.
He added that presently, we stand on the precipice of a global digital era, and it could not be more imperative than now that Africa embraces and accelerates the digitalisation progress in trade and finance to level the playing field globally.
“We have an advantage in the digitization race as Africans. This is due to the bulging youthful population who are tech-savvy, the high mobile phone penetration, the consistent expansion of mobile network access and more importantly, the rising homegrown FinTech solutions. These immense opportunities provide fertile grounds for accelerating digitalisation. And while these are commendable, it is important to highlight the potential negative impact a lack of requisite investments in African FinTechs could have on the innovations and scalability of solutions in achieving the desired impact.
“To a great degree, the lack of funding can significantly stunt the growth of the FinTech movement in several ways. Without sufficient capital, brilliant ideas, and prototypes of FinTech startups solutions with the potential to address the diverse financial service needs have failed to progress to production. Furthermore, a FinTech is only as strong as its members and in that same vein, a lack of funding could ultimately impact a FinTech’s ability to attract and retain premium talent.
“The regulatory aspect is another major reason we cannot ignore the issue of deficient funding in the FinTech space. This could hinder FinTech companies’ ability to navigate regulatory requirements and meet compliance standards, which we all agree are non-negotiables, especially in Ghana’s and Africa’s financial industry. From the regular engagement with FinTech startups as part of the Bank’s innovation nurturing role, it has emerged that most of these nascent companies generally lack investor visibility. Hence, the need to address the information gap between investors and FinTech startups to stimulate the payment ecosystem. This will help unleash the full potential of FinTech startups to contribute meaningfully to the economic development of the African continent.
“Against this background, the upcoming 3i Africa Summit is designed as a platform for governments, businesses, investors, regulators, innovators, and thought leaders to discuss and collaborate on measures to unlock Africa’s full potential by harnessing the potential of FinTech. The Summit, which is premised on innovation, investment, and impact, is being organised by the Bank of Ghana and Development Bank Ghana, in partnership with the Monetary Authority of Singapore through its subsidiary, Elevandi, organisers of the globally acclaimed Singapore Fintech Festival (SFF).”