Experts Meet in Kenya to Promote Use of Fintech to Spur Intra-African Trade

The 11th edition of the Africa Fintech Summit brought together more than 200 participants composed of senior government officials and financial services industry executives from across the continent to review ways to expand the use of digital technologies to enhance trade among African countries.

Wamkele Mene, the secretary general of the African Continental Free Trade Area (AfCFTA) Secretariat, said fintech is one avenue to increase the level of intra-African trade, which is estimated at 15 percent compared to 70 percent within the European Union and 60 percent in Asia.

"Fintech companies are transforming Africa's financial services by enabling previously unbanked business people to engage in seamlessly cross-border trade," Mene said.

Mene added that Africa has one of the fastest-growing fintech sectors in the world and is expected to reach 65 billion U.S. dollars annually by the year 2030.

John Tanui, principal secretary for Kenya's Ministry of Information, Communications and The Digital Economy, said fintech offers numerous advantages over traditional banking because of its innovative digital solutions that enable real-time settlement of cross-border transactions.

Tanui noted that Kenya also plans to leverage the Africa Trade Gateway, an e-commerce platform owned by the African Export-Import Bank, in order to find markets for local products.

Leon Kiptum, board member of the Association of Fintechs in Kenya and senior vice president of Flutterwave, a pan-African fintech company, said mobile payment platforms offer a convenient channel to settle cross-border transactions with minimal transaction fees.

4155/v