The European Business Council for Africa

The Fintech Revolution in Africa’s FX Markets

Date: 5 April 2022, 12:30-14:30 CET-1

Online

Foreign exchange volatility is often cited as one of the primary impediments to doing business in Africa. However, in a region which has pioneered the widespread uptake of mobile money, the rapid growth of fintech could transform Africa’s financial landscape. Innovations such as digital currencies are streamlining FX in the region and could provide a springboard to overcome some of the challenges that have hindered cross-border payments. Traditional financial institutions are now pursuing ways to harness new technologies to improve transparency and efficiency, for example through the introduction of national digital currencies in Nigeria, Senegal and Tunisia. Similarly, the introduction of the Pan-African Payments & Settlement System by Afreximbank aims to leverage digital payment capabilities to facilitate cross-border payments within the rollout of the AfCFTA.

However, as with the advent of any new technology, the rapid rise of fintech in Africa has brought with it questions about regulation and security, particularly where tech interacts with established financial institutions or highly sensitive cross-border payments. In partnership with Verto, Invest Africa will be asking how fintech is set to disrupt African FX and how these developments can be harnessed to facilitate the flow of capital across the continent.

Discussion Points:

  • Which developments in fintech are set to shape African financial services over the next decade?
  • How are established financial institutions adapting to the rise of fintech?
  • With the introduction of the e-naira in Nigeria last year, as well as national digital currencies launched in countries such as Senegal and Tunisia, how are digital currencies changing the financial landscape in Africa?
  • Are central banks striking the right balance on regulation of digital currencies and fintech players?
  • How can fintech streamline and stabilise FX in Africa?
  • How important is a Pan-African Payment & Settlement System to the operational roll-out of the African Continental Free Trade Agreement?

 

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