Rwanda on course towards financial inclusion

Rwanda's journey towards financial inclusion and embracing fintech innovation has proven to be a success, with the country surpassing its targets and achieving over 80 per cent penetration in these areas. CNBC Africa recently had the opportunity to speak with John Rwangombwa, the Governor of the National Bank of Rwanda, to delve deeper into these advancements. Rwanda's financial landscape has seen significant progress in recent years, with a notable increase in the use of digital payments and financial services. Governor Rwangombwa acknowledged that while there is still a reliance on cash for financial transactions, the shift towards digital channels is on the rise. The country's commitment to education and awareness campaigns has played a crucial role in driving this digital transformation. Rwanda's efforts in implementing interoperability solutions, such as the R-Suite, have also contributed to the growth of digital channels and are set to have an even bigger impact in the future. The government's digitalization agenda has further supported the transition to a cashless economy, signaling a positive outlook for Rwanda's financial landscape. In terms of the currency performance, Governor Rwangombwa mentioned that Rwanda faced pressures on the exchange market due to a high and increasing trade deficit. However, the country experienced a boost in revenues from tourism, remittances, and foreign direct investment, which helped alleviate some of these pressures. This year, Rwanda anticipates a reduced depreciation rate of around 9.4%, compared to the significant 18% depreciation seen last year. With continued normalization, the country aims to return to a more stable 5% depreciation rate. The overall economic climate in East Africa, including Rwanda, has been favorable, showcasing robust growth and resilience amidst global uncertainties. The region has seen positive trends in digital payments and innovations, setting a promising foundation for future advancements. Governor Rwangombwa emphasized the importance of addressing challenges such as climate change, geopolitical shifts, and global economic dynamics, highlighting the need for proactive measures and strategic planning. As Rwanda continues its journey towards financial inclusion and fintech excellence, the collaborative efforts of the government, private sector, and stakeholders are pivotal in driving sustainable growth and development.