NAIROBI, Kenya- African governments are being urged to enhance the capacity of their financial regulators to keep pace with the rapid evolution of financial technologies.
At the Africa Fintech Festival in Naivasha, experts emphasized the necessity of equipping regulatory bodies with the technical skills needed to oversee the burgeoning fintech sector effectively.
Enhancing Regulatory Skillsets
Kwame Oppong, Director of Fintech & Innovation at the Bank of Ghana, highlighted a critical gap: “Regulatory bodies historically have not been equipped with the skillset required to fully supervise the fintech space.”
This gap, if unaddressed, risks destabilizing financial systems and hindering fintech growth.
To counter this, Oppong and other speakers stressed the importance of training regulators to understand and manage the risks associated with innovative financial technologies.
Kenya’s Regulatory Sandbox: A Success Story
Mary Kerema, Kenya’s Secretary for ICT, E-Government, and Digital Economy, shared insights into Kenya’s proactive approach.
The government has supported its regulators by establishing a regulatory sandbox, such as those by the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA).
These sandboxes allow fintech companies to test new financial products and services in a controlled environment, ensuring they meet regulatory standards before a full market rollout.
“Fintechs have the potential to drive financial inclusion, bridge economic disparities, and propel Africa into a new era of prosperity and inclusivity,” said Kerema. “From mobile banking and blockchain to AI-driven financial services, fintech innovations are democratizing access to financial resources, enabling millions to participate in the global arena.”
Towards a Pan-African Regulatory Framework
Speakers also called for a unified regulatory approach across Africa.
Dr. Patrick Olomo, Senior Economist at the African Union, advocated for a pan-African regulatory sandbox to harmonize regulations continent-wide.
This initiative is crucial for the seamless operation of fintech applications across borders, especially in light of the African Continental Free Trade Area (AfCFTA).
“The pace at which fintechs and wider digital finance are impacting the financial sector warrants central banks and all other financial regulators to be much more proactive in providing the enabling policy and regulatory framework if Africa is to fully reap the benefits of digitization and digitalization,” added Olomo.
Esther Waititu, Safaricom’s Chief Financial Services Officer, underscored the importance of collaboration: “With the regulators, this is an opportunity to co-create. We want to give customers an exciting, elevating, and simple transparent experience.”
The festival, which brought together policymakers, private sector players, and innovators, underscores the importance of joint efforts in shaping a secure and prosperous digital future for Africa.
