Bank of Ghana Governor Ernest Addison, has called for massive investments in digitization to boost Africa’s economic development.
Addison made this call on Monday during the launch of the 3i Africa Summit on Technology and Innovation to take place in Ghana this May, adding that Africa has a great advantage in the digitization race due to its youthful population.
If the potentials presented by the youthful population were harnessed effectively, the governor said they would help boost the continent’s economic development.
He said the technology-savvy nature of the youth, coupled with the high mobile phone penetration, consistent expansion of mobile network access, and rising homegrown financial technology (FinTech) solutions, increased Africa’s advantage in the era of digitization.
“These immense opportunities provide fertile grounds for accelerating digitization, and one of the aspects of digitization Africa should leverage for inclusive growth is FinTech,” Addison stated during the ceremony, also attended by Vice President Mahamudu Bawumia.
For that reason, he said the acceleration should include financial investments that digital technology and FinTech startups need to translate their ideas and designs into much-needed products that would impact African economies positively.
“The lack of funding can significantly stunt the growth of FinTechs in several ways. Without sufficient capital, brilliant ideas and prototypes of FinTech startup solutions with the potential to address diverse financial service needs have failed to progress to production,” he stated.
He said the Bank of Ghana has been playing its role in nurturing such innovations in the sector through constant engagement.
During these engagements, he said the emerging issue has been that the nascent FinTech businesses lack general investor visibility.
Addison stressed, “A FinTech is only as strong as its personnel, and in that same vein, a lack of funding can ultimately impede a FinTech’s ability to attract and retain premium talent.”
“We 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,” he added. Addison added that the 3i Africa Summit would provide a platform for these FinTech startups and investors to interact and open doors for them to develop their mutual interests.