Africa’s FinTech market is projected to surge thirteenfold to US$65 billion by 2030, with a compound annual growth rate (CAGR) of 32 per cent, according to a recent report by professional services firm BDO.

This staggering growth projection underscores the continent’s dynamic role in global financial innovation, a central theme of the African Economic Research Consortium's (AERC) upcoming 61st Biannual Plenary Session in Nairobi on December 1, 2024.

The event, hosted in collaboration with the Central Bank of Kenya (CBK), will take place at Glee Hotel and bring together economists, policymakers, and financial leaders to explore the potential of FinTech to transform economies.

The plenary’s theme, “The FinTech Revolution in Africa,” reflects the continent's ability to lead financial innovation while addressing critical challenges like inclusion and economic resilience.

BDO’s report, Unlocked Potential: FinTech in Africa, attributes this market growth to innovations like mobile money, which have revolutionised financial accessibility by providing unbanked populations with seamless payment and transfer solutions.

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The report also highlights lending platforms that utilise alternative data to deliver microloans and other financial products to underserved communities, paving the way for widespread financial inclusion.

Central Bank of Kenya Governor Dr. Kamau Thugge, who will officially open the plenary, emphasises the critical role of regulators in guiding FinTech’s growth.

Key sessions will delve into how central banks and financial institutions can leverage FinTech to drive regional economic transformation while mitigating risks.

AERC Executive Director Prof. Victor Murinde highlighted the importance of the Practitioners Round Table, a key feature of the plenary.

Co-hosted with the Kenya Bankers Association (KBA), the forum will focus on how commercial banks in East Africa are strategically embracing FinTech as a transformative investment avenue.

"This session will provide an invaluable platform for commercial banking leaders to share their successes and lessons learned in navigating structural challenges and seizing untapped opportunities," Murinde stated.

"Through their insights, we can explore how digital transformation, strategic partnerships, and an enabling regulatory environment continue to deepen financial inclusion and add value to economies across the region."

The plenary will also host the Central Bank Governors Forum under the theme “Central Bank Digital Currencies: Where Are We?”

This session will explore how CBDCs can address challenges such as cross-border payments and financial inclusion while preserving monetary sovereignty amidst the rise of cryptocurrencies.

With nations like Nigeria, South Africa, and Ghana leading CBDC initiatives, and others, including Kenya, exploring possibilities, the forum will provide actionable insights on fostering collaboration and accelerating adoption through public-private partnerships.

Complementing these high-profile discussions, the event will feature keynote addresses, research presentations, and interactive panels on topics such as regulatory frameworks, AI in financial services, and the role of FinTech in addressing climate resilience.

By placing Africa’s US$65 billion FinTech potential at the forefront, the AERC’s plenary aims to solidify the continent’s reputation as a leader in financial innovation, offering solutions not only for the region but for the global economy.