Africa’s FinTech sector is on the rise. Have regulations helped or challenge the rise?
New innovations and an expanding mobile market has created the perfect breeding ground for Africa’s emerging FinTech sector. Investors injected a total of $849.8m into the continent’s FinTech startups between 2014 and the first six months of 2019, according to FinTech Global’s research.
As with in every sector, the regulations can both stifle and encourage growth. So we asked one of Africa’s leading FinTech entrepreneurs what role he thought laws had played in Africa’s growing FinTech sector.
“The issue of regulation is an interesting one in the African context,” Chijioke Dozie, co-founder and CEO of Nigerian FinTech Carbon, tells RegTech Analyst. “There is no universal approach but with or without regulation, FinTech entrepreneurs across the continent are finding ways to innovate.
“On one hand, there are some markets where regulation is either unclear or unhelpful, making it difficult for many entrepreneurs to confidently explore growth opportunities.
“On the other hand, you have markets where regulators have taken a hands-off approach. In these markets, although regulation does exist, it applies only to certain areas. And even in those areas, it tends to be loosely applied
“There are also some markets where governments have taken a collaborative approach. For example, Kenya’s Capital Markets Authority is working on a regulatory sandbox, along with relevant stakeholders, that will enable entrepreneurs to explore new opportunities under the regulator’s supervision. This will give entrepreneurs a chance to innovate while regulators ensure that consumers remain protected.”
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