Technology should be used to boost regional integration in Africa, says AfDB’s George Heinen

The private sector should take the lead in regional integration across Africa, but the government must create a conducive fiscal policy environment, according to George Heinen, Alternate Governor at the African Development Bank. In a recent interview with CNBC Africa's Godfrey Mutizwa, Heinen highlighted the potential gains that could be achieved through increased interregional trade within the continent. He emphasized that despite some challenges, the European Union's progress in regional integration over several decades serves as a model for African nations to follow. Heinen encouraged African countries to leverage technology, particularly in sectors like agriculture, to enhance production and foster collaboration. A key aspect of regional integration highlighted by Heinen is the role of technology in bridging gaps and promoting financial inclusion. He noted that technological advancements present an opportunity for African countries to streamline financial services and reach underprivileged populations who have limited access to traditional banking systems. Platforms like the African Transformation Ventures (ATV), a collaboration between the African Development Bank, the Gates Foundation, AFD, and Luxembourg, aim to drive financial inclusion through digital means. By leveraging FinTech solutions, African nations can facilitate transactions, access information, and promote democratic principles by breaking down national boundaries. Financial inclusion has become a focal point for several African governments, with Nigeria leading initiatives to expand access to financial services, particularly in the informal sector and agriculture industry. Heinen acknowledged the varying levels of progress across different regions in Africa but expressed optimism that successful examples could inspire other nations to prioritize financial inclusion and technology adoption. He emphasized the potential for technology to complement existing government policies and accelerate momentum in sectors like agriculture. In discussing the private sector's role, Heinen underscored its significance as the primary driver of technological innovations. Drawing parallels with the US, Europe, and Asia, where private firms lead in developing solutions, Heinen emphasized the need for African governments to provide regulatory support and create enabling frameworks for private sector engagement. While acknowledging the importance of financial backing, Heinen expressed confidence in the private sector's ability to drive technological advancements even in the absence of significant venture capital. Heinen's insights underscore the critical juncture at which African nations find themselves, with technology poised to play a pivotal role in advancing regional integration and economic growth. By harnessing the power of technology to enhance interregional trade, drive financial inclusion, and leverage private sector innovation, African countries can chart a path towards greater economic prosperity and sustainable development.