This ambition isn't new. Rwanda's Vision 2050 and the National Strategy for Transformation 2017â€"2024 have long set the stage for the country to emerge as a hub for financial services in Africa. As part of this broader vision, the Kigali International Financial Centre was established to transform the investment landscape across the country and to attract global capital and funds.
But why Rwanda? In a continent where Nigeria, Kenya, and South Africa dominate fintech conversations, what makes Rwanda stand out? Despite facing significant challenges, Rwanda presents a compelling case study on how a focused national strategy and investment in technology can transform a country's financial landscape.
Rwanda's ability to innovate and adapt, coupled with its commitment to digital inclusion and progressive policies, has positioned it as a rising fintech hub that shouldn't be overlooked.
Peace Aimee Niyibizi, World Bank Country Economist for Rwanda stated that, 'Rwanda's economy showcased resilience and adaptability, achieving a robust growth rate in 2023, amidst a series of challenging external and domestic factors'.
Last year the country's GDP was 8.2% - significantly higher than other countries including Nigeria (2.74%); Kenya (5%) and South Africa (0.6%). The growth can be attributed to agricultural modernization, industrial expansion, service sector growth, pro-business government policies, digital innovation and the rise of fintech.
Lily Umutesi Ngarambe, Yellow Card's Country Manager for Rwanda, expresses her excitement about how fintechs are revolutionising the financial sector. 'Fintechs are blurring the boundaries of traditional financial firms and the financial sector.
This presents a paradigm shift that has various policy implications such as fostering beneficial innovation and competition, while managing the risks. In addition, it supports reviewing regulatory, supervisory, and oversight frameworks to ensure they remain fit for purpose and enable the authorities to foster a safe, efficient, and inclusive financial system.'
Rwanda's transformation into a fintech powerhouse is the result of a deliberate and sustained effort to leverage technology for economic growth. From the Vision 2020 plan which aimed to transition the country into a knowledge-based economy, to the 2001 ICT Policy that laid the groundwork for digital innovation, Rwanda has been building the infrastructure necessary for a thriving fintech sector.
The government's commitment is further exemplified by initiatives like the One Laptop Per Child program and the establishment of numerous tech hubs and innovation centres across Kigali.
In the broader context, fintechs like Yellow Card with innovative products like the Payments API and its on and off ramp Widget have been instrumental in opening up greater business financial opportunities to companies looking to do business in Africa.
So, while the big players in African fintech might be drawing the most attention, don't lose sight of Rwanda. This small but mighty nation is poised to make significant strides in the fintech spaceâ€"strides that could reshape not just its own economy, but the entire African continent's financial landscape.
The author of this opinion is a Rwandan Senior Brand Communications Manager based in South Africa
Rutendo Nyamuda
Source : https://en.igihe.com/opinion/article/fintech-development-why-you-should-keep-an-eye-on-rwanda
