The African Economic Research Consortium (AERC) launched its 61st Biannual Plenary Session in Nairobi, Kenya, under the theme “The FinTech Revolution in Africa.”
The event, which was held in collaboration with the Central Bank of Kenya (CBK), Kenya Bankers Association, and other key partners, provided a platform for policymakers, economists, and industry leaders to examine the rapidly growing role of financial technology (FinTech) in Africa’s economic transformation.
Challenges Facing Africa’s FinTech Ecosystem
Dr. Kamau Thugge, CBS, Governor of the Central Bank of Kenya, delivered the keynote address, where he outlined both the immense potential of FinTech and the significant challenges that could impede its growth across the continent.
Speaking to the delegates, Dr. Thugge emphasized that while Africa is poised to lead the global FinTech revolution, several hurdles must be addressed to unlock its full potential.
He identified infrastructure constraints as one of the primary obstacles facing the sector, noting that access to reliable internet and electricity remains uneven across many parts of Africa.
“Infrastructure gaps, particularly in rural areas, present a real challenge to the scalability of FinTech services,” Dr. Thugge explained.
He stressed that bridging these gaps is crucial for ensuring that FinTech can reach underserved populations and drive financial inclusion on a large scale.
Regulatory complexities were also highlighted by the Governor, who pointed out the need for consistent and coherent policies across the continent.
“While some African countries have made significant strides in creating a regulatory environment conducive to FinTech, others are still grappling with fragmented and sometimes conflicting regulations,” he said.
Dr. Thugge urged governments to adopt more harmonized regulatory frameworks to support the growth of the sector.
Cybersecurity risks were another area of concern, with Dr. Thugge warning that as FinTech adoption increases, so too does the vulnerability to cyber threats.
He called for heightened efforts to improve cybersecurity measures across the financial technology ecosystem to protect both users and service providers.
Despite these challenges, Dr. Thugge emphasized that Africa’s strengths – including a youthful, tech-savvy population and rapid mobile penetration – present unique opportunities for the continent to become a global leader in FinTech.
“Africa is not just participating in the global FinTech revolution—it is leading it,” he declared, referencing projections that the sector will grow thirteenfold to $65 billion by 2030.
Commitment to Evidence-Based Policy and Strategic Partnerships
Dr. Thugge also reaffirmed the Central Bank of Kenya’s commitment to strategic partnerships that foster evidence-based policy-making.
He pointed to the collaboration between the CBK and AERC as an example of how research-driven insights can inform policies that promote financial inclusion and economic resilience.
“The collaboration between CBK and AERC exemplifies how research-driven insights can directly inform and shape policies that promote financial inclusion, economic resilience, and innovation. We look forward to deepening this partnership to tackle emerging challenges and leverage the immense opportunities that FinTech offers,” he stated.
AERC’s Vision for the Future
In a separate address, Prof. Victor Murinde, AERC Executive Director, unveiled the organization’s new Strategic Plan for 2025–2035.
The plan focuses on positioning AERC as a center of excellence in economic research, with an emphasis on renewal, inclusion, sustainability, and innovation.
Prof. Murinde emphasized that the new strategy ensures AERC remains at the forefront of addressing Africa’s economic challenges through high-quality research and impactful policy engagement.
“This strategy ensures AERC remains at the cutting edge of addressing Africa’s economic challenges through rigorous research and impactful policy engagement,” he said.
He also noted that AERC’s mission of strengthening local capacity for economic research and policy influence is particularly relevant at this moment when FinTech is driving significant social and economic change across the continent.
“Our work ensures that rigorous, policy-relevant research informs Africa’s development trajectory. Partnerships, like the one we share with the Central Bank of Kenya, are central to this mission,” Prof. Murinde explained.
Setting the Stage for the Future of FinTech in Africa
The 61st plenary session opened the door to a week of in-depth discussions, presentations, and roundtable dialogues on the role of FinTech in Africa’s economic future.
Delegates will explore topics including the role of FinTech in driving financial inclusion, fostering economic growth, and addressing key challenges like climate resilience and digital infrastructure development.
As the continent grapples with the challenges outlined by Dr. Thugge, the AERC remains committed to advancing research that helps shape policies that can turn these challenges into opportunities, ensuring that Africa continues to lead in the global FinTech revolution.
The African Economic Research Consortium (AERC) is a leading institution in economic research and policy analysis in Africa.
Established in 1988, AERC state it aims to strengthen local capacity for economic research and policy influence by fostering collaborative research, training, and the dissemination of knowledge that shapes Africa’s economic policy.