AfDB supports Africa fintech hub project with $525,000 grant
By Lucy Ogalue
The African Development Bank (AfDB) has signed a $525,000 agreement to support Africa Fintech Networks’ (AFN) Hub project.
Mr Lamin Barrow, the Director General, AfDB, Nigeria Country Branch, said during the signing in Abuja on Tuesday that the project would boost the fintech industry on the continent.
“This $525,000 grant will support the operationalization of an online digital hub to serve as a repository of knowledge for fintech entities across the continent and globally.
“ The Digital Hub, to be delivered through a strategic partnership between the Africa Fintech Network and Cenfri, will help strengthen the fintech ecosystem across Africa, increasing the competitiveness of the industry.
“The grant is funded by the Africa Digital Financial Inclusion Facility (ADFI), inaugurated by the AfDB Group, together with partners the Bill and Melinda Gates Foundation
“Other partners are the Luxembourg Ministry of Finance and the Agence Française de Développement in 2019, with France’s Ministry of Finance and Economy and the Women Entrepreneurs’ Finance Initiative (We-Fi) joining in 2020 and 2022 respectively.”
The Director General said the event marked an important milestone in the AfDB’s efforts to promote digital innovation and financial inclusion in African countries.
Barrow cited the 2021 Global Findex Study, which said 49 percent of Africans were excluded from the formal economy and the benefits it provided.
He reiterated the importance of fintech on the continent, including providing powerful, easily accessible and efficient digital financial solutions to bridge the financial inclusion gap.
Barrow said with the current digital disruption in the financial sector, more fintech startups were coming to the fore.
“These companies leverage technology to provide innovative financial services, including payments, lending, savings, financial literacy and financial infrastructure services.
“It results in greater efficiency, better service provision and lower costs,” he said.
According to him, financial inclusion is the key to economic empowerment and resilience, especially for underserved sections of our society.
He said the need to leapfrog barriers and scale up inclusive digital financial solutions to accelerate economic resilience across Africa had become even more urgent.
He quoted the AfDB President, Dr Akinwumi Adesina, as saying that with the right investments in innovation and smart digital growth, the obstacles to achieving financial inclusion and greater economic opportunity for all would be overcome.
According to Barrow, the Hub will enable fintech associations across Africa to pool knowledge, strengthen partnerships and showcase their innovations and impact, including from women-led or owned fintech companies.
“The project design is underpinned by a detailed needs assessment that informed the value proposition of the AFN Hub as a one-stop knowledge repository.
“It will help improve coordination between African fintech associations, improve linkages for market access and investment opportunities, for effective advocacy with key public and private stakeholders.
“AfDB is strongly committed to our partnership with AFN to fully unlock Africa’s fintech potential and create a digital economy.”
Responding, Dr Segun Aina, AFN President, thanked the AfDB for its support, while pledging their commitment to deliver the project.
“We are really pleased that AfDB is playing a leading role in supporting this innovative initiative. AFN is equally committed to the partnership with AfDB.
“And we look forward to building on this productive collaboration going forward, as there is still much to be done to unlock the potential of digital inclusion for Africa towards creating the Africa we want,” Aina said. (NAN)(www.nannewa.ng)
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Edited by Ese E. Eniola Williams
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