Fintechs and Government Unite to Boost Financial Inclusion in the DRC
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Loading... - Patrick Okine
- 19 Sep 2024
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To promote financial inclusion and drive growth in the fintech sector, several fintech companies in the Democratic Republic of Congo (DRC) have partnered with the government to establish the Congolese Fintech Network (CFN). This collaborative effort aims to create a framework that fosters information-sharing, increases access to investment opportunities, and promotes a regulatory environment conducive to innovation and development.
The CFN has already enlisted 15 fintech companies, including MaishaPay, Velex Advisory, and Zando, as well as major banks like Ecobank and international organizations like Deloitte and PWC. This diverse membership will enable the network to leverage the strengths of its partners to create a more cooperative and efficient fintech industry in the DRC. Joel Tshilumba, a board member of CFN, emphasized the importance of collaboration, stating that the government plays a central role in achieving the network's objectives.
Despite steady growth in the fintech sector, the DRC still faces significant challenges in terms of financial inclusion. With a financial inclusion rate of 38.5% in 2022, the country has a long way to go to achieve the government's target of 55% by 2028. The CFN aims to play a crucial role in advocating for a regulatory environment that supports innovation and development, ultimately increasing access to financial services for underserved populations.
The CFN's partnership with the government follows a trend seen in other African countries, where startups are working with governments to establish industry standards. In Nigeria, for example, the startup ecosystem collaborated with the government to introduce a startup law that governs all startup activities. The CFN's efforts will focus on shaping policies that encourage investment, competition, and access to financial services, ultimately promoting financial inclusion.
The CFN has several initiatives planned, including the Congo Fintech Week conference in May, where it will release studies on its progress and plans to increase financial inclusion in the DRC. The network will also establish branches in four of the country's largest cities: Kinshasa, Goma, Lubumbashi, and Matadi.
