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The African Development Bank (AfDB) has signed a $525,000 grant agreement with Africa Fintech Network (AFN) to strengthen the development of fintech in Africa.
The funds will be used to set up the Africa Fintech Hub – an online portal to serve as a one-stop shop for all fintech activities in Africa.
It is understood that the Africa Digital Financial Inclusion Facility (ADFI) will provide funding and technical assistance to the AFN to host and manage the hub.
A 2022 study by Mastercard Foundation, The Future of Fintech: Rapid Growth Attracts Smart Capital, revealed that fintech startups in Nigeria and other African countries grew by 81 percent in 2021.
The study also revealed that South Africa, Nigeria, and Kenya were emerging as key hubs in Africa.
Furthermore, it disclosed that the fintech sector accounted for 27 percent of record-high number of deals closed and 61 percent of the $2.7 billion that was raised in Africa in 2021.
A World Bank report also revealed that over the past decade, fintech had helped 1.2 billion unbanked people gain access to financial services, reducing the unbanked population worldwide by 35 percent.
Director General of the AfDB Nigeria Country Department, Lamin Barrow, disclosed that the project would contribute to strengthening the fintech ecosystem in Africa, boost competitiveness in the digital world, whilst leveraging partnerships.
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