Navigating fintech in the DRC: Opportunities, challenges & future trends

The Democratic Republic of Congo (DRC) has seen a remarkable growth in its fintech sector, with a notable 5 per cent increase in mobile money users in the first quarter of 2024 and a substantial $62 million raised in start-up funding in 2023. Despite these advancements, a staggering 80 per cent of the population remains unbanked due to challenges such as low internet penetration and inadequate infrastructure. Although still in its early stages compared to regional counterparts like Kenya and Nigeria, the DRC's fintech industry presents substantial potential for growth and innovation. Rocky Abdoul Milingita, a Digital Financial Services Consultant at Microsave Consulting, shed light on the burgeoning fintech landscape in the DRC. One of the key drivers of this growth has been the expansion of mobile money services, which have played a pivotal role in enhancing financial inclusion in the country. The rise in active users and revenue in mobile services underscore the increasing adoption of digital financial solutions in the DRC. Moreover, the emergence of fintech start-ups focusing on payment, lending, and microfinance services has further diversified the financial services market in the country. Regulatory support from the Central Bank of Congo has also been instrumental in fostering the development of the fintech sector. The introduction of guidelines like Instruction 58 on payment system interoperability has created a conducive environment for fintech companies to thrive. In addition to regulatory backing, there has been a surge in partnerships between traditional financial institutions and fintech firms to extend financial services to underserved populations. However, the flourishing fintech industry in the DRC is not without its challenges. Infrastructure limitations, including low levels of electricity access and internet penetration, pose significant barriers to the widespread adoption of digital financial services. Moreover, issues such as financial literacy, lack of trust in digital platforms, and regulatory complexities hinder the seamless operation and expansion of fintech companies in the country. In addressing the issue of financial inclusion in the DRC, fintech companies are focusing on customer-centric product design and offering low-cost solutions tailored to the needs of the population. Collaborations between traditional financial institutions and fintech start-ups are also bridging the gap to reach unbanked segments of the population. In terms of investment, the fintech sector in the DRC has attracted substantial funding, with over $62 million raised in startup funds in 2023. The growing interest from both local and international investors, as well as partnerships with financial institutions and development funds, has provided a significant boost to the fintech ecosystem in the country. Looking ahead, some emerging trends in the DRC's fintech space include increased collaboration between traditional banks and fintech firms, regulatory advancements to support innovation, and a focus on technology adoption and cybersecurity. The growing use of smartphones and improved internet connectivity are expected to further drive the accessibility of fintech services, while measures to enhance cybersecurity will safeguard digital platforms against potential threats. Overall, the trajectory of the fintech sector in the DRC signals a promising future, with innovation, collaboration, and regulatory support playing key roles in unlocking financial inclusion and driving economic growth in the country.