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This article was contributed to Tekkabal by Noel K Tisiani, founder of the Congo Business Network.
As technology is a major issue of our time, public and private institutions in Francophone Africa must put technology at the center of their economic development strategies.
Startups, large companies and governments in Francophone Africa will benefit from the realization that using modern technologies can increase efficiency and reduce waste, with significant economic results on the horizon.
Developing the fintech sector should be a priority for governments in Francophone Africa, especially sub-Saharan countries where financial inclusion rates are low. 90% of retail transactions in sub-Saharan Africa are based on cash. And traditional bank branches are extremely expensive to expand and operate not only in capital cities but also in rural areas where road and transport networks are extremely poor.
Fintech startups and mobile money operators are key to ensuring the largest number of people in Francophone Africa have access to financial services. However, to foster a strong fintech environment in the region, central banks should work closely with fintech entrepreneurs and telecommunications companies to address any key issues that may hinder the success of fintech solutions.
A good example is how the Central Bank of Congo, the Bank of Central African States and the Central Bank of West Africa are working to regulate fintech startups and mobile money providers in the 15 countries they cover.
The Central Bank of Congo has the mandate to regulate fintech in the Democratic Republic of Congo, the world’s largest French-speaking country with 100 million inhabitants.
The Bank of Central African States, located in Yaounde, has fintech regulatory authority in 6 countries. They include the Republic of Congo (Brazzaville), Central African Republic, Gabon, Equatorial Guinea, Chad and Cameroon. The total population of these 6 countries is approximately 51 million.
The West African Central Bank in Dakar is responsible for regulating fintech in 8 countries: Guinea Bissau, Mali, Ivory Coast, Togo, Benin, Burkina Faso, Niger and Senegal. The population of these 8 countries is about 130 million people.
With a total population of 281 million, Francophone Africa represents nearly 22% of Africa’s population of 1.3 billion.
Prioritizing technology and especially the adoption and growth of fintech can be done in two ways. If these three central banks are able to jointly issue a joint fintech license, it will be easier for fintech startups in the region to expand from one country to another without experiencing unnecessary delays in obtaining new licenses needed to operate legally in different countries. .
The second area of cooperation of the 3 central banks involves joint initiatives that increase the visibility of startups in Francophone Africa in the media. These initiatives help start-ups to attract investors to English-speaking countries such as Nigeria, Kenya, Egypt or South Africa.
Using these two ideas as examples, prioritizing technology will boost economic growth in Francophone Africa.
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