Role of private-sector in building robust payment ecosystems in Africa

The financial landscape in Africa is undergoing a significant transformation, driven by private-sector innovation that is revolutionizing digital payments and fostering financial inclusion across the continent. In a recent interview with CNBC Africa, Nkebet Mesele, Founder & CEO of Intrensic, highlighted the role of private-sector partnerships in building robust and inclusive payment ecosystems post-COVID. Mesele emphasized that while significant progress has been made in advancing digital payments, there are still underserved markets that present unique opportunities for growth and development. Three key sectors were identified as areas where private-sector innovation can drive impactful change: agriculture, renewable energy, and healthcare. The agriculture sector, which accounts for 60% of Africa's uncultivated land, represents a prime opportunity for fintech companies to leverage technology such as AI-driven credit assessments and blockchain-enabled smart contracts to empower farmers and enhance financial inclusion. By bridging the gap between traditional farming practices and modern financial services, these innovations have the potential to transform the livelihoods of farmers and propel them towards greater economic prosperity. Renewable energy is another area where private-sector partnerships are driving positive change in Africa. With abundant natural resources such as wind and solar energy, the continent has the potential to harness these resources for sustainable development. Integrating pay-as-you-go models into solar financing and expanding access to renewable energy solutions can improve energy access and affordability for communities across Africa. The healthcare sector presents a critical opportunity for private-sector innovation to address pressing challenges related to access to healthcare services and affordability. By leveraging technology to deliver micro-insurance solutions and digital credits, fintech companies can facilitate access to essential healthcare services for underserved populations. In countries like Nigeria, where small amounts of money can mean the difference between life and death, digital solutions have the power to save lives and improve health outcomes. In addition to sector-specific innovations, Mesele emphasized the importance of collaboration among fintech companies, telecoms, and traditional banks in driving real financial inclusion. While partnerships are essential for scaling digital payments, regulatory frameworks and policy reforms are equally vital for ensuring sustainable growth and interoperability across diverse markets in Africa. Mesele highlighted the need for governments to work closely with the private sector to harmonize policies and regulatory frameworks, enabling seamless cross-border transactions and fostering trust in the financial ecosystem. By aligning regulatory standards and adopting a more inclusive approach to policy reform, Africa can overcome regulatory bottlenecks and accelerate the growth of digital payments. The interview underscored the importance of private-sector partnerships in driving innovation and expanding access to financial services in Africa. By leveraging technology, collaboration, and regulatory reforms, fintech companies have the potential to transform the financial landscape and empower individuals and communities across the continent.