3i Africa Summit: VP Bawumia urges to drive economic growth through digital innovation

Dr. Bawumia called for enhanced collaboration across governments, financial institutions, tech startups, and investors to create synergies and drive collective growth.

During the 3i Africa Summit held in Accra on May 14, 2024, Dr. Mahamudu Bawumia, the Vice President of Ghana, called on African leaders, fintech companies, and financial institutions to seize the significant opportunities available in Africa to drive economic growth and improve the lives of its people through digital innovation. Speaking on the topic “Digitising Economies In Africa: A Future Imperative,” Dr. Bawumia emphasized the critical role of fintech in leveraging Africa's unique market dynamics, including a youthful and growing population, increasing internet penetration, and a burgeoning financial services sector.

Highlighting the swift evolution of the fintech sector as the fastest-growing startup industry on the continent, Dr. Bawumia pointed to the alignment of several favorable trends that propel the significant market potential and transformative impact of fintech on financial inclusion and economic expansion in Africa. He noted the maturity of fintech services as a key factor at a pivotal inflection point for African financial services, poised to unlock unprecedented opportunities and spearhead the next wave of fintech innovation and growth.

However, Dr. Bawumia also cautioned that this growth requires careful strategizing. He advised fintech startups in Africa to adopt a multifaceted approach focusing on innovation, market potential, and stringent adherence to regulatory compliance and transparency. This strategy, he explained, is essential to attract and secure substantial investment.

"Startups should continuously strive to develop groundbreaking solutions that cater to the unique challenges faced by African consumers and businesses," Dr. Bawumia said, underscoring the necessity of building trust with long-term investment through regulatory compliance and operational transparency.

He urged startups to engage proactively with regulatory authorities, participate in regulatory sandboxes, and establish robust governance frameworks to foster a conducive investment environment for sustainable growth.

Referencing a UN report, Dr. Bawumia highlighted the projected demographic shifts where Africa will account for 25% of the global population by 2050, indicating not just a vast theoretical market but an expanding addressable technology market. He outlined critical future trajectories for fintech in Africa, including digital payments, financial literacy initiatives, and AI-driven solutions, essential for sustainable growth.

Dr. Bawumia called for enhanced collaboration across governments, financial institutions, tech startups, and investors to create synergies and drive collective growth. He stressed the importance of investing in education, training, and cutting-edge technologies to build a resilient and inclusive fintech ecosystem that not only drives economic growth but also enhances financial inclusion and the overall quality of life in Africa.