2017 has been the most challenging year for the African fintech, but Africans are optimistic that 2018 will be the best year for the African fintech. Economic growth across the continent and speeding up of the fintech innovation is expected come 2018. The following are some of the main points that should make the Africans optimistic of the technological growth.
Gas in West Africa
The new development of the new pipelines, drifting liquefied natural gas platforms and main gas field projects from Senegal to Angola is expected to fuel up the fintech growth in West Africa. The gas will offer the Sub-Saharan countries a better opportunity to increase the local power generation and spread its revenue distribution apart from crude oil. The gas will be in a position to power the local industries and increase the revenue collection by cutting down on the costs of operation.
Efforts to secure gas supply, including regulatory moves to support investment in the oil sector have been noted in of Guinea and the rest of West African states. Freeing the gas market and allowing the regulation of the prices by the market will be vital to increasing gas investment infrastructure in the region.
Reviving the economy
In the past few years, the low prices of commodities have led to the decline of the economy in most African states. The year 2018 is expected to take a different direction. The African economic growth will be facilitated by the upcoming of the Africans strong economic determinants like Nigeria and South Africa which have been affected by the low commodity prices. There has been economic growth in countries like Ghana, Ethiopia, and Cote d’Ivoire. According to Ecobank, Nigeria and South Africa account for over 50% of Gross Domestic Product (GDP) of the Sub-Saharan Africa which means any slight drop in the two nations affects the whole region. Not only the commodity prices that will promote the growth of the economy but also the other key players like infrastructures, logistics, financial sectors and many others.
Strengthening infrastructure within West and East Africa and improvement of environmental conditions that will sustain the growth of crops are the key pillars of the economic growth in 2018.
Africa has experienced high upcoming fintech growth in the recent past. Fintech plays a key role in how business is carried out in Africa. There have been many fintech innovations in Africa and they have succeeded. Many investors are expected in the year 2018 in technology sector. However, with the leadership coming from the Africans, it is not the Europeans and Americans who will issue instructions on what is to be done.
Ecobank in its research it highlighted South Africa, Kenya, Ghana, Nigeria, Rwanda, and Corte d’Ivoire by their intensive use of mobile that are helping in improving financial inclusion. Ecobank said that 57% of the world’s active mobile money accounts are found in Sub-Saharan Africa.