The Ghanaian government has reiterated its commitment to digital and economic transformation.
Ghana govt announced the launch of three initiatives aimed at deepening financial inclusion and accelerating digital payments.
These aligned with the Akufo-Addo administration’s vision of building a payment system that accelerates economic development.
The Ghanaian government has reiterated its commitment to digital and economic transformation. Ghana Govt has announced the launch of three initiatives aimed at deepening financial inclusion and accelerating digital payments.
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Ghana’s a three-pronged digital approach
They are the National Financial Inclusion and Development Strategy, the Digital Financial Services Policy, and Cash-Lite Roadmap. These aligned with the Akufo-Addo administration’s vision of building a payment system that accelerates economic development. It is heartening to see a government resist pushing innovation to the back burner. This comes at a time when the coronavirus pandemic is placing economies under extreme pressure all over the world. Digital payments – and by extension, cryptocurrencies – are seen as a critical initiative in curbing the spread of the virus.
The policies developed with the support of key local and international partners. Thus, the strategy aims to increase the rate of financial inclusion from 53% to 85% in 2023, and It is the result of a collaboration with the World Bank. However, the policy aims to buffet the digital ecosystem, economy, and private sector by harnessing new technologies. Developed in partnership with the global independent think tank Consultative Group to Assist the Poor. Working with the UN-backed NGO Better than Cash Alliance, Ghana designed its roadmap to turn cellphones and mobile money platforms into vehicles for economic change. This was a multi-industry initiative encompassing fintech, traditional financial institutions, and telecommunications firms.
It does hope that these initiatives will help move the country towards a cashless economy and promote proper financial management. They also aligned with Ghana’s national development goals.
Africa to the fintech fore
A relatively small nation of around 30 million people, Ghana’s fintech ecosystem is one of the most robust in sub-Saharan Africa. As the number of smartphones, internet penetration rates, Thus, tech-based financial services has increased, so has the appetite for fintech revolution. Coupled with the government’s digitization drive, this bodes well for the future of the industry and blockchain-based products in the country.
With its unique circumstances, Africa saw as the last frontier for many global fintech and financial institutions. Africa’s size and difficulty in building brick-and-mortar infrastructure are no longer problems. Though many issues that hamper other countries such as convoluted legacy systems are not on a question on the continent. Cellphones and increased internet penetration mean it has the opportunity to innovate give over 60% of Africans financially excluded economic freedom.
Innovation nerve centers in Nigeria, Ghana, Egypt, Kenya, and South Africa have produced startups that have the world’s attention. They’ve created a barrage of digital solutions, covering mobile money, online payment processing, lending, and investing. These include Lagos-based digital payments firm Interswitch Group, fresh off its Visa acquisition, and Jumia, Africa’s “first tech unicorn.” Year after year, fintech tops the list when it comes to entrepreneurial funding. It is set to remain one of the hottest tech verticals as Africans endeavor to find solutions to their own problems.