In an era where technology is reshaping industries, fintech solutions are emerging as pivotal players in Africa’s economic landscape. By bridging the gap between the informal and formal sectors, these innovative financial services are empowering small and medium-sized enterprises (SMEs) to thrive, ultimately fostering a more resilient economy.
Fintech solutions offer unprecedented access to financial services for those traditionally excluded from the mainstream banking system. This access is crucial for SMEs, which form the backbone of many African economies. By providing tools for efficient money management, credit access, and investment opportunities, fintech enables these businesses to grow and stabilize. According to Vera Songwe, Chair & Founder of Liquidity and Sustainability Facility, building a robust manufacturing base requires a strong network of SMEs that can transition into formal businesses, creating a sustainable supply chain that supports large enterprises.
I think that the Fintech solutions have not only allowed for access to better financial services, but they have also provided better resilience to this segment of the population that really up to now has been the anchor of the informal sector, which we need to work hopefully with fintech solutions to make more formalized
Vera Songwe, Chair & Founder of Liquidity and Sustainability Facility – Cameroon
The synergy between fintech and larger enterprises is equally important for sustaining growth in Africa. By connecting SMEs with established manufacturing businesses, fintech fosters an environment where collaboration and innovation can flourish.
“Africa cannot develop if we do not build manufacturing and big business. Small and medium sized enterprises will be the backbone. But they need to be anchored on large enterprises, large manufacturing enterprises that can continue to hire, demand and create growth. And so i think that connection hopelly between fintech growing SMES to a certain level where they can then transform to move formal businesses, get into a better long term supply chain that provides and anchors manufacturing is what is needed for the continent”
Vera Songwe, Chair & Founder of Liquidity and Sustainability Facility – Cameroon
Africa’s fintech market, led by South Africa, Nigeria, Egypt, and Kenya, is projected to grow thirteenfold to US $65 billion in 2030. This remarkable growth underscores the increasing recognition of fintech as a catalyst for economic transformation on the continent. As more entrepreneurs leverage these innovative financial solutions, the potential for job creation and increased productivity becomes even more pronounced.