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Rwanda’s fintech sector has emerged as one of the fastest-growing industries, as highlighted in the 2024 Monetary Policy and Financial Stability Statements report released by the National Bank of Rwanda. The report underscores a significant uptick in transfers across various digital platforms during the period under review.
Mobile payments witnessed a remarkable surge, with transfers increasing by 57% to 603 million, accompanied by a 49% rise in value to FRW 13,001 billion. Meanwhile, mobile banking transactions saw a 28% volume increase (from 19 million to 24 million) and a staggering 115% value surge (from FRW 2,347 billion to FRW 5,039 billion). Similarly, transfers via Internet banking recorded a notable uptick, rising by 68% in volume (from 3 million to 5 million) and 99% in value (from FRW 5,378 billion to FRW 10,697 billion).
To foster the burgeoning fintech landscape, the National Bank of Rwanda has established a regulatory sandbox. This platform allows fintech innovators to test their products while enabling regulators and policymakers to stay abreast of the latest developments driving financial services innovation.
Rwanda’s recognition as a leading innovation hub in Africa was reaffirmed in the recent publication of the Global Financial Centres Index (GFCI 35). This accolade follows the country’s remarkable achievement of raising $38 million in startup funding in 2023, marking a substantial six-fold increase from 2022. Rwanda’s success in attracting venture capitalists and private equity investors underscores its commitment to nurturing a vibrant innovation and entrepreneurial ecosystem, thereby facilitating increased access to funding for African startups.
Kigali, the capital city, has surged in global rankings, now standing at 67th place globally and retaining its position as the second in sub-Saharan Africa (SSA). Additionally, Kigali has ascended to sixth place in the Middle East and African region, trailing closely behind major financial hubs such as Dubai, Abu Dhabi, Casablanca, Tel Aviv, and Mauritius. Notably, Kigali’s fintech ranking soared by 18 places, positioning it at 62nd globally and second in Africa after Casablanca.
The ascent of Kigali as a premier financial and technological hub is underpinned by a proactive strategy. This strategy entails investing in robust infrastructure, ensuring widespread access to affordable, high-quality internet, overcoming regulatory hurdles, and developing cutting-edge facilities. These concerted efforts cultivate an ecosystem conducive to tech startups and reinforce Kigali’s stature as a preferred destination for technology-driven enterprises.
Moreover, Rwanda has successfully attracted major players and funds such as Katapult, Virunga Fund, and the recently introduced Timbuktoo Africa Fund. These initiatives complement the Rwanda Innovation Fund’s endeavors by providing increased access to capital and technical support, thereby propelling the development of emerging startups.
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