Comply with regulatory requirements, maintain transparency – Bawumia urges startups
With Africa’s youthful population, high mobile and internet penetration rates, and growing middle class, the continent offers a fertile ground for fintech growth, Vice President Dr Mahamudu Bawumia has said.
He said startups should articulate a clear vision of how their solutions cater to the needs of the growing market, backed by data-driven insights and market research.
Crucially, building trust is paramount for attracting long-term investment, Dr Bawumia said.
“Compliance with regulatory requirements and maintaining transparency in operations are non-negotiables. Startups should proactively engage with regulatory authorities, participate in regulatory sandboxes where available, and establish robust governance and compliance frameworks. By doing so, they can instill confidence among investors and fostering a conducive investment environment for sustainable growth,” he said during the 3i Africa summit on Tuesday, May 14.
Dr Bawumia further stated that today, Africa boasts a population of 1.2 billion people, with a striking 70% under the age of thirty-five (35), as reported by the United Nations.
Additionally, he said, more than 40% of this population is under fifteen years old. Projections indicate that by 2050, Africa will account for 25% of the world’s population.
“This demographic landscape does not merely signify a vast theoretical market but also emphasizes an expanding addressable technology market. Research from industry prominently reveals that Africa is experiencing remarkable digital connectivity, with over 90% mobile penetration and 88% internet penetration.
“To put this in perspective, Sub-Saharan Africa alone has a larger mobile user base than the combined populations of the United States and the United Kingdom. These statistics highlight the continent’s digital readiness and further presents a compelling case for the immense potential that Africa holds as a thriving market for technology and fintech innovation.
“Key trajectories such as digital payments, financial literacy initiatives, and AI-driven solutions are expected to shape the FinTech landscape in Africa. By focusing on these areas and investing in research and development, we can unlock new opportunities and drive sustainable growth.
“Ultimately, we stand at a pivotal juncture in the evolution of the FinTech and tech sectors in Africa, where the choices we make today will profoundly influence our trajectory for years, if not decades, to come. It is imperative that we embrace responsible innovation, creating a balance between pushing technological boundaries and ensuring ethical considerations and regulatory compliance” the flagbearer of the New Patriotic Party (NPP) said.
The 3i Africa Summit has brought together key players in the financial, investment, policy-regulatory and digital technology domains in Africa. These include 3 Heads of State, 10 Governors of Central Banks within and outside Africa including the Bank of Ghana’s Dr. Ernest Addison, the Central Bank of Nigeria’s Dr. Olayemi Michael Cardoso and the National Bank of Rwanda’s Hon. John Rwangombwa.
In addition, there are over 150 Chief Executives and Senior Executives of FinTechs and Financial institutions across the globe including Serigne Dioum, CEO of MTN Group Fintech, Dr. Patrich Saidu Contech, CEO of Africa Fintech Network, Saurav Bhattacharya, CEO of Proxtera, Conrad Kraft, Strategic Advisor, DigitalEuro Association, and Co-Founder and CFO, Tradelite Solutions, Mariame MacIntosh Robinson, President of Qenta Inc., Sopnendu Mohanty, Chief Fintech Officer at MAS.
