The 3i Africa Summit aims to drive investment, innovation, and use of fintech in Africa
The maiden edition of the 3i Africa summit has birthed strategic partnerships that will put the continent ahead through financial technologies.
The aim is to drive investment, innovation, and impact in Africa using fintech as the catalyst.
The summit with thousands of participants to explore strategies on how Africa can leapfrog through fintech has set the tone for de-risking critical sectors of Africa’s economy for mutual benefits and inclusive growth on the continent.
Through a series of keynote speeches, panel discussions, and networking sessions, participants delved into the challenges and opportunities in Africa by harnessing the power of financial technologies to drive sustainable economic growth and create opportunities for all.
Speakers
The call to action was to acknowledge the critical role that fintech plays in ensuring economic growth and prosperity across the continent.
Ghana’s President, H.E Nana Addo Dankwa Akufo-Addo who opened the three-day event in his speech, emphasized that by embracing fintech solutions and creating an enabling regulatory environment, Africa will unlock new opportunities for innovation, entrepreneurship, and financial inclusion.
He thus urged African countries to prioritize fintech as a tool for development and to take proactive steps towards tapping its transformative potential.
Governor of the Bank of Ghana, Dr. Ernest Addison, called for concerted efforts to improve the scalability of investments to fast-track the adoption of digital technologies.
Other governors and speakers from key institutions on the continent, made a strong case for advancing fintech and the digital economy through public and private sector collaboration.
Deals
One of the key highlights of the summit was the formation of strategic partnerships designed to address pressing financial issues and promote technological advancements.
Worth mentioning, a notable agreement from the summit was the US$100 million deal between Development Bank Ghana (DBG) and Proxtera, a Singaporean-based open and neutral hub connecting Business-to-Business (B2B) marketplaces, service providers, and trade associations digitally.
This partnership aims to simplify and amplify trade for Small and Medium-sized Enterprises (SMEs).
The funds allocated from this deal will support SMEs through the Ghana Integrated Financial Ecosystem (GIFE) platform.
Finance Minister, Hon. Dr. Mohammed Amin Adam announced Ghana’s strategic Memorandum of Understanding (MOU) with the ECOWAS Bank for Investment and Development (EBID), to provide USD 200 million in funding for Small and Medium Enterprises (SMEs) via concessional lending by the Ghana Exim Bank (GEXIM) and the Ghana Commercial Bank (GCB).
“This partnership with EBID marks a significant step towards driving sustainable economic growth and fostering resilience within our SME sector. The commitment of USD 200 million underscores our dedication to empowering SMEs, creating jobs, and catalyzing innovation for long-term economic prosperity”, he said.
Fidelity Bank, Ghana’s largest privately-owned bank also signed a landmark agreement with Proxtera on to empower Small, and Medium Enterprises (SMEs) through the Ghana Integrated Financial Ecosystem (GIFE) Platform.
GIFE is a collaborative effort between the Development Bank Ghana (DBG), the Monetary Authority of Singapore (MAS), and the Bank of Ghana (BOG), with Proxtera as the digital infrastructure provider,
These collaborations are expected to enhance financial inclusion, streamline payment systems, and introduce innovative solutions that cater to the unique needs of African markets.
E-cedi pilot
The Bank of Ghana (BoG) also announced the successful completion of the first Proof of Concept (POC) as part of its Digital Economy Semi-Fungible Token (DESFT) project.
This milestone marks the successful execution of a cross-border transaction payment utilizing digital credentials, the eCedi, and an approved stablecoin from Singapore.
Initiated in June 2023, the DESFT project is a collaborative effort between the Central Bank and the Monetary Authority of Singapore (MAS). Its primary objective is to support small and medium-sized enterprises (SMEs) in Africa, with a focus on Ghana, to participate in international trade.
By addressing significant obstacles such as establishing trust with overseas trade partners and facilitating cross-border payments and supply chain finance, Project DESFT aims to enhance the competitiveness of SMEs and stimulate economic growth in the region.
The 3i Africa Summit
Ghana from May 13-15, 2024 hosted the maiden 3iAfrica Summit – a three-day event to drive digitalisation and technology in the financial sector to enhance inclusion.
The summit, an initiative by the Bank of Ghana, Development Bank Ghana, and the Monetary Authority of Singapore, assembled about 4,000 business executives from around 80 countries.
The theme of the summit was “Unleashing Africa’s FinTech and Digital Economic Potential,” and it focused on transforming Africa’s economic landscape through sustainable, long-term capital allocation.
The event also provided a platform for policy discourse, global alignment of intellectual resources, entrepreneurial endeavours, and investment networking.