Financial Inclusion in Africa: An Ongoing Mission beyond the 3i Africa Summit

The recent 3i Africa Summit in Accra, Ghana served as a powerful platform to discuss the role of Fintech in driving financial inclusion and promoting long-term, sustainable economic growth across Africa. The summit also aimed to attract investment and encourage responsible use of Fintech for financial inclusion and broader economic development.

While the summit highlighted impressive progress, the journey towards financial empowerment for all Africans requires sustained efforts, particularly in the area of financial literacy education.

The Urgency of Financial Literacy

Despite strides made in Fintech adoption, a significant portion of the African population remains financially excluded.

According to the 2021 Global Findex report, about two-thirds of unbanked adults say they could not use an account (excluding mobile money) at a financial institution without help. The report also found that one-third of mobile money account holders in Sub-Saharan Africa say they cannot use their account without assistance. Women are disproportionately affected, being 5 percentage points more likely than men to seek help using financial services.

However, even with progress in account ownership and increased access through Fintech solutions and interoperable payments infrastructure, a more critical hindrance to adoption and usage is: financial literacy. The ability for individuals to not just access, but also effectively utilize the vast array of Fintech solutions available is crucial.

The 3i Africa Summit undoubtedly ignited important conversations, but the need for financial literacy education extends beyond a single event. The industry needs to champion financial literacy as an ongoing mission in order to achieve the following:

• Unlocking the industry's Potential: From mobile money to payment apps, the Fintech landscape offers a wealth of platforms and channels. However, without a basic understanding, many Africans may be hesitant to use them or risk using them ineffectively. Financial literacy empowers users to navigate these platforms, maximize their benefits, and ultimately achieve their financial goals.
• Building Trust and Long-Term Engagement: Financial inclusion is a two-way street. Fintech companies need loyal and engaged users. Financial literacy initiatives build trust by demonstrating a commitment to user well-being, fostering a more sustainable financial ecosystem.
• Mitigating Risk and Promoting Responsible Borrowing: Fintech can democratize access to credit, but without financial literacy, individuals might fall prey to predatory lending or take on unsustainable debt. Financial literacy education equips users with the knowledge to assess loan terms, manage credit responsibly, and build a healthy financial future.

The Real Work Starts Now!

The momentum from the 3i Africa Summit needs to translate into concrete action:

• Key institutions involved in regulation and infrastructure development should take the lead in driving financial literacy education. Regulators can incorporate financial literacy programs as licensing requirements.
• Financial Service Providers need to develop and deliver accessible educational resources in local languages, explaining key financial concepts and empowering users to make informed decisions. Collaboration with existing financial literacy organizations can amplify reach and leverage expertise.
• Financial Service Providers can integrate financial literacy tools, providing users with contextual learning opportunities.

Financial inclusion in Africa is an ongoing journey, and financial literacy is the key to unlocking its true potential. By championing financial literacy as a core mission, the Fintech industry can empower many more Africans to leverage adopt and use financial technology services to build a more prosperous future. The spirit of collaboration fostered by the 3i Africa Summit can serve as a springboard for continued progress, ensuring that financial inclusion translates into real economic empowerment for all.

My name is Eunice Asantewaa Ankomah, I am PR & Communications Strategist & a Certified Digital Finance Practitioner. I have over 10 years Experience helping FinTech Companies Connect Profit to Purpose with Effective PR & Communication strategies that drive usage, adoption, empowerment and inclusion.

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