Finance Minister, Dr Mohammed Amin Adam, has noted that the fintech sector is poised to exert a profound influence on the Continent’s economic growth and societal advancement.
The Minister noted that with a significant portion of the Continent’s populace grappling with limited access to formal financial services, fintech emerges as a beacon of hope, offering unprecedented opportunities to bolster financial inclusion and empower more individuals to participate meaningfully in the formal economy.
According to the Minister, Ghana has made significant strides in nurturing a vibrant fintech ecosystem, asserting that Ghana’s fintech sector boasts of a diverse array of startups, accelerators and regulatory initiatives, solidifying the country’s position as a frontrunner in fintech innovation across the continent.
The Finance Minister commended the Bank of Ghana for being proactive in establishing a regulatory framework conducive to fintech innovation, exemplified by initiatives such as the Payment Systems and Services Act, Act 987 and establishing a Fintech and Innovation Office.
These efforts affirm our commitment to fostering innovation while safeguarding consumer interests and preserving financial stability,” he added.
Speaking further, the Minister noted that his outfit is finalizing an SME financing strategy that has components such as direct lending to SMEs, providing guarantees to financial institutions, reducing the cost of borrowing, and supporting skills and innovation in the SME ecosystem through fintechs.
Low financing to SMEs continues to be a critical barrier to the acceleration of growth and development on the African continent. In Ghana, SMEs constitute 92% of manufacturing, 70% of GDP growth, and provide 80% of jobs.
According to the Finance Minister, the Government’s focus going forward is to generate growth within the country’s borders by increasing access to capital. This, he noted, cannot be achieved without a strong fintech infrastructure; an important requirement to address the efficiency of delivering capital to SMEs and reducing the risks of recovery of funds by financial institutions.
In my capacity as Ghana’s Finance Minister, I am steadfastly committed to harnessing the potential of our nation’s fintech landscape to drive sustained economic growth and progress.
“By leveraging the collective knowledge, innovation, and dynamism of our fintech sector, we can unlock new opportunities, generate employment, and accelerate progress towards our overarching development goals,” the Minister noted.
Over the three-day period of the 3i Africa Summit, participants will engage in over 15 sessions with speakers and discussants contributing to over 60 topics aimed at finding the pathways that deliver the most traction in the drive to generate momentum and achieve progress in line with the Summit’s theme, “Unleashing Africa’s Fintech and Digital economic potential”.