GSMA predicts affordable mobile access would strengthen Nigeria’s fintech business
According to the GSMA, affordable mobile connections, increased smartphone ownership, and supporting regulatory frameworks would strengthen the fintech business in Nigeria and other African nations.
According to the worldwide telecoms organization, Sub-Saharan Africa’s fintech business has been strengthened by a boom in new solutions as well as increased funding and investments. This sector is expected to expand even further in the future as the necessary circumstances improve.
This was disclosed in the association’s ‘The Mobile Economy in Sub-Saharan Africa (2023)’ study. It is estimated that a trend toward digital lifestyles would drive the region’s fintech business to rise by 10% each year until 2025.
It stated, “The growth of fintech varies significantly across the region, with mature markets such as Kenya and South Africa leading the way, while countries such as Ghana and Nigeria have high potential.
“With a rising shift towards digital lifestyles, regulatory initiatives continue to emerge in the region to support fintech solutions for financial inclusion. For example, Nigeria, Ghana, and Uganda have introduced programs to stimulate financial inclusion and increase digital cash transactions.
“The programme will encourage fintech stakeholders to innovate with new product offerings. Likewise, there are a number of regional initiatives, such as the Pan-African Payment and Settlement System, which supports instant crossborder payments in local currencies and expanded its operations in 2022. Such regional and national initiatives aid collaboration opportunities, encouraging the growth of digital payment networks.”
Payments and wallets are likely to be the region’s fastest-growing items. The expansion of fintech services has ensured that mobile operators such as MTN and Airtel Africa are looking beyond basic connectivity to venture into the fintech space by improving mobile money services and increasing collaborations with fintech companies and financial institutions, according to the GSMA.
