The intersection of technology and finance in Africa is not just evolving; it is rewriting the rules of financial inclusion. This reality came into sharp focus during two compelling sessions at the University of Aberdeen's Centre for Commercial Law and Global South Law Research Network events where the conversation went beyond typical tech discourse to examine the very foundation of financial innovation in Africa.
The "Shaping the Future" Roundtable, expertly moderated by Dr. Titilayo Adebola and Dr Eddy Wifa, dove deep into the complexities of fintech and digital markets in Africa. Dr. Ify Ogo, Regional Specialist on the African Continental Free Trade Area (AfCFTA) at the United Nations Development Programme (UNDP), provided illuminating insights through her presentation on positioning Africa's digital products to benefit from trade liberalisation. Her analysis revealed that seven of Africa's eight unicorns are fintech companies, highlighting the sector's dominance in driving innovation across the continent. The depth of her presentation underscored how international trade in digital products is evolving, with various trade agreements like the United States-Mexico-Canada Agreement and African Continental Free Trade Area’s Protocol on Digital Trade providing frameworks for defining and regulating digital products, from computer programs to electronically transmitted content.
Dr. Ogo's presentation emphasised how the continent's fintech unicorns are reshaping the financial landscape, demonstrating that Africa is not just participating in the global fintech revolution; it is leading it. Her examination of Africa's unicorn list showcased impressive valuations and diverse geographical representation, from Nigeria's Interswitch to Egypt's MNT-Halan, each contributing to the continent's digital transformation. Unlike markets burdened by legacy systems, many African nations have the opportunity to build financial frameworks from scratch, with digital innovation at their core.
The continental landscape presents both opportunities and challenges. With 55 African Union countries, including 38 coastal and 17 landlocked nations, the diversity of markets requires thoughtful consideration in developing digital financial solutions. The AfCFTA's vision of creating one African market, serving 1.3 billion people with a combined GDP of US$3 trillion, presents unprecedented opportunities for fintech innovation and growth. However, as Dr. Ogo pointed out, the path to digital trade liberalisation faces unique challenges, including 107 unique borders, high tariffs on goods, and complex non-tariff barriers and regulatory processes that need harmonization.
Davidson Oturu’s presentation on "Fintech Law and Practice in Nigeria," brought practical insights that challenged our traditional understanding of financial systems. His perspective was particularly valuable given his role as the author of a comprehensive 19-chapter textbook on Nigeria's fintech landscape. The presentation drew from his extensive expertise in the Nigerian fintech ecosystem, exploring critical elements such as regulatory sandboxes, data protection frameworks, and emerging technologies like blockchain and artificial intelligence. His discussion of specialised fintech verticals and dispute resolution mechanisms provided concrete examples of how the sector is evolving. One of the most striking aspects of the discussion was how Africa's unique position allows it to leapfrog traditional financial infrastructure.
The legislative drafting workshop the following day led by Davidson Oturu, provided fascinating insights into Nigeria's Startup Act – a recently passed law that is setting the pace for tech innovation in Africa. The workshop revealed how the Act was crafted to address specific challenges facing Nigerian startups while fostering an environment conducive to innovation. The discussions opened up crucial conversations about regulatory frameworks needed to support digital products that increasingly cross borders unseen - a phenomenon Dr. Ogo had specifically highlighted the previous day, in her presentation about the unique nature of digital trade.
What became increasingly clear through these sessions was that Africa's fintech revolution is not just about adopting new technologies – it is about creating entirely new paradigms for financial services. From mobile money solutions to blockchain applications, these innovations are reshaping not just how people handle money, but how they interact with the entire financial ecosystem. The presentation's focus on payment processing services delivered via apps illustrated how digital financial products are transforming cross-border trade within the AfCFTA framework.
The dialogue between technology and regulation emerged as a central theme. While technological innovation moves at breakneck speed, the legal framework must be both robust enough to protect consumers and flexible enough to accommodate future developments. This balance is crucial for the sustainable growth of Africa's fintech sector, particularly as we navigate diverse and opaque market entry barriers for digital products. Dr. Ogo's analysis of these barriers revealed their complex nature - some visible, others hidden - highlighting the need for comprehensive regulatory approaches that facilitate rather than hinder digital trade.
Looking ahead, the challenge is not just technological – it is structural. How do we create regulatory frameworks that protect while promoting innovation? How can legislation anticipate rather than react to technological change? These questions are not just academic – they are fundamental to the success of fintech in Africa, especially as the continent works to implement AfCFTA's vision of removing tariffs and non-tariff barriers while lowering thresholds for market access.
The sessions highlighted the need for a collaborative approach between technologists, legal experts, and policymakers. The future of African fintech lies not in playing catch-up, but in creating innovative, forward-thinking frameworks that can serve as models for other emerging markets. This is particularly relevant as we consider the AfCFTA's role in facilitating cooperation on trade-related regulations and creating a more integrated digital marketplace. As we witness this transformation, it is clear that Africa's fintech journey is not just about digital transformation – it is about financial inclusion, economic empowerment, and sustainable development. The conversations started at Kings Hall in the ancient University of Aberdeen will undoubtedly echo in the policies and practices that shape Africa's digital financial future.
The road ahead is both challenging and exciting. As Africa continues to lead in fintech innovation, the key will be maintaining the balance between rapid technological advancement and sound regulatory frameworks. This is not just about building better financial systems – it is about creating a more inclusive and accessible financial future for all, leveraging the opportunities presented by trade liberalisation while thoughtfully addressing the challenges of digital market integration.
*Kamo Sende is a Nigerian-qualified attorney with six years of experience in international trade and commercial law, with particular emphasis on environmental regulations and food security issues.
He is currently a doctoral researcher at Robert Gordon University, Aberdeen, where he also teaches Practical Dispute Resolution while investigating the intersection of international trade law, sustainability, and food security for small-scale farmers in the Global South.
