Browsing: Financial Inclusion in Africa

  • African governments are moving to ease requirements for digital financial services
  • Limited digital finance infrastructure funding is still a hurdle
  • Women, rural populations benefit most from the digitization of financial services in Africa

African nations are now investing in digitizing their financial systems as the basis to among other things, increase financial inclusion.

By digitizing financial systems, the continent will be able to overcome the related costs of physical engagements and that way save more money and increase sector reach especially to rural areas.

“Widespread adoption of digital payments including international and domestic remittances, can be instrumental in reaching the financial inclusion goals of the G20,” notes the World Bank.

Read: Why digitization is important in the insurance industry 

In that report titled ‘The opportunities of digitizing payments: How digitization of payments, transfers, and remittances contributes to the G20 goals of broad-based economic growth, financial inclusion, and women’s economic empowerment,’ …

Fintech has the potential to revolutionize the African financial services landscape. Already mobile payments and microloan technologies are taking root rapidly across the continent.

The success of mobile money provider M-Pesa in many countries such as Egypt, Ghana, India, Kenya, Lesotho, Mozambique, Romania, and Tanzania among others is an example of the potential of fintech on the continent. 
Read Also: Mobile money making Africa bankable
Financial Inclusion
In Africa access to traditional financial services is limited. Transaction costs with banks are usually very restrictive. This cou...

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None of us particularly like money-lenders and few of us would want the stress and unpleasantness of being the type of money-lender that proliferates in cities like Kampala – leeching returns of 10% a month against assets pledged by desperate borrowers.  The reason that these bloodsuckers can exist is that access to credit on reasonable terms, or at all, from banks is still so difficult to get for most businesses.  
Also Read: Mobile money loans affecting banks’ lending – report
The fact is that there are some great businesses that cannot grow and often struggle to survive because cash-flow ...

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