Biannual plenary session: The fintech revolution in Africa

The African Economic Research Consortium (AERC) hosted its 61st Biannual Plenary Session today, 1st December 2024 in Nairobi, Kenya, under the theme “The FinTech Revolution in Africa.” The event, held in partnership with the Central Bank of Kenya (CBK) and Kenya Bankers Association among others, brought together leading economists, policymakers, and practitioners to explore the evolving role of financial technology in shaping Africa’s economic future.

Prof. Ernest Aryeetey, Chair of the AERC Board of Directors and Emeritus Professor of Development Economics at the Institute of Statistical, Social, and Economic Research at the University of Ghana, chaired the plenary opening session and welcomed the Biannual plenary session conference participants to Nairobi.

The Chief Guest, Dr. Kamau Thugge, CBS, Governor of the Central Bank of Kenya, delivered a powerful opening address that underscored Africa’s FinTech potential and Kenya’s leadership in fostering digital financial inclusion. Dr. Thugge reiterated that Kenya’s vibrant FinTech ecosystem, bolstered by a supportive regulatory environment and innovations like MPESA, has revolutionized access to financial services, particularly for the unbanked population. “With FinTech projected to grow thirteenfold to $65 billion by 2030, Africa is not just participating in the global FinTech revolution—it is leading it,” he remarked.

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In his speech, Dr. Thugge reaffirmed CBK’s commitment to fostering strategic partnerships with institutions such as the AERC to ensure evidence-based policy formulation and implementation. “The collaboration between the CBK and the 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. Dr. Thugge also highlighted the challenges facing Africa’s FinTech ecosystem, such as infrastructure constraints, regulatory complexities, and cybersecurity risks. He urged stakeholders to remain steadfast in addressing these hurdles while capitalizing on the continent’s strengths, including a youthful, tech-savvy demographic and increasing mobile penetration.

In his remarks, Prof. Victor Murinde, AERC Executive Director, unveiled the organization’s Strategic Plan for 2025–2035, designed to position the Biannual plenary session AERC as a locus of research excellence. He emphasized the plan’s focus on renewal, inclusion, sustainability, and innovation, adding, “This strategy ensures AERC remains at the forefront of addressing Africa’s economic challenges through high-quality research and impactful policy engagement.” he stated.

Prof. Murinde highlighted the organization’s enduring mission of strengthening local capacity for economic research and policy influence. He noted that the 61st plenary is pivotal when Africa’s FinTech sector is driving significant social and economic change. “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 stated.

The Biannual plenary opening sets the tone for a week of thought-provoking discussions, research presentations, and roundtables. Delegates will delve into the role of FinTech in fostering financial inclusion, driving economic growth, and addressing challenges such as climate resilience and digital infrastructure gaps.