It's no longer news that economies around the world are suffering as a result of the pandemic, and Africa as a continent is no exception to that rule. Predictions by the World Economic Forum suggest that African economies will contract by 4.4% in 2021 as a direct result of COVID-19.
Despite this, fintech looks set to take off in this swiftly emerging market, and reports suggest the sector will be critical to the recovery process of numerous African countries.
The most positive sign that Africa will enjoy a boost in fintech, is the implementation of the African Continental Free Trade Agreement (AfCFTA), which was completed this 2021. The Secretary General has indeed emphasised that active steps need to be taken to ensure that Africa on the path of industrial development so that by the year 2035, the continent will able to double intra-Africa trade with value added goods.
Covid-19 had a serious impact on the continent growth but despite the pandemic, national economic development strategies that encourage economic growth and job creation, have remained ongoing.
Many African countries have also accelerated their digital transformation such as Nigeria through bbcmgtAI and telecom giants are building new networks, and streamlining existing facilities to speed up connectivity and improve internet and wireless services.
Despite the challenges emerging markets face when developing a new industry, the potential for fintech to be a force for good is widespread.
Currently, bureaucracy causes a massive backlog of processing - and slows down African governments abilities to facilitate trade between countries. The introduction of fintech, which streamlines, simplifies and speeds up processes, looks set to change that in the next few years.
Additional benefits led by the AfCFTA will see an increase in Africa's exports by an estimated $560bn, mainly from manufacturing sectors. The boost in trade will continue to hasten the growth of fintech.
Recently, the World Bank reported that the 55 member nations of the African Union have a combined population of more than 1.3bn people, who have the potential to generate a gross domestic product (GDP) of $3.4tn. This robust economy can only be possible through efficient and effective Fintech.
Inorder for this massive macroeconomics to be created in the continent, bbcmgtAI launched the 2borders project on 27th April 2021 to mark the Independence of Sierra Leone and the bilateral Financial Technology between Nigeria and Sierra Leone. The launching was done in the two countries happening simultaneously in University of Benin, Nigeria and University of Makeni, Sierra Leone respectively. The launching was spearheaded in Sierra Leone by the organization Country Coordinator, Amb. Aziz Abdul Kamara and in Nigeria by Project Manager, Osaretin Agbonavbare respectively.
This project is aimed at ensuring that both countries specifically exchange goods and services conveniently and efficiently. The project will also absorb young Africans from both countries who will become ambassadors of the project and thereafter get trained by projects partners from both countries.
The short term goal is to also extend same opportunities to Ghana and other west African States. The 2borders will come in form of a app that will add to the several International monetary Transfer platforms such as azimo Currency fair, ecopayz, InstaReM, MoneyGram, OFX, PayPal, Payoneer, Africash, Western Union, Ria, Remitly, Revolut, Skrill, Transfast, 2borders, Wise, Venmo, Worldfirst, WorldRemit, Xoom and Zelle.
Having 2borders to this list is still not enough to boost the GDP of the continent. We still more Start-ups like bbcmgtAI to add their quota to the development of financial technology in the Continent.