Fragmentation, cost threaten fintech growth in Africa — BoG Governor

The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has stated that Africa’s next wave of digital finance growth will move beyond payments, with greater opportunities emerging in areas such as digital credit, embedded finance, supply chain finance, merchant payments, and cross-border financial services.

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According to him, the continent has largely made significant progress in building payment infrastructure, making it necessary for stakeholders to focus on creating the next layer of financial value.

Speaking at the second edition of the 3i Africa Summit in Accra, which focuses on innovation, investment, and impact in Africa’s fintech ecosystem, Dr. Asiama said the future of financial technology must be designed to address the practical needs of underserved groups across the continent.

“The next phase of digital finance will not be defined by payment because the payment infrastructure is increasingly in place. The opportunity now lies in building the next layer of value,” he said.

He identified key growth areas, including digital credit, merchant payments, embedded finance, supply chain finance, and cross-border services, stressing that financial product must be tailored to meet the realities of women, micro, small, and medium-sized enterprises (MSMEs), young people, and players in the informal sector.

Dr. Asiama noted that the challenge facing the sector is no longer simply about access to financial systems, but rather issues of fragmentation, high operational costs, and uneven regulatory alignment across markets.

“The challenge is no longer building systems. It is connecting them,” he stated, calling for clearer priorities and stronger coordination in implementation across the fintech ecosystem.

The BoG Governor further emphasized the need for balanced regulation that protects consumers and preserves financial system integrity, while at the same time enabling responsible innovation and market growth.

“Regulation must remain firm. It must protect the public. It must safeguard the integrity of the financial system and preserve stability. At the same time, it must be enabling. It must support responsible innovation and allow markets to develop in a structured and predictable manner. Regulation and growth are not opposing forces,” he said.

He reiterated Ghana’s commitment to supporting an integrated and inclusive fintech ecosystem capable of driving sustainable economic transformation across Africa.

Source: Citi Business News