Blockchain and African Financial Digitalization

Webinar Recording: How blockchain can transform African financial digitalization and benefit SMEs?

Oct 20, 2022 | Virtuel

The EIB West and Central Africa SME Banking and Microfinance Academy 2022

Webinar series

20 October 2022 -- Within the context of the European Investment Bank (EIB) Technical Assistance Financial Sector Programme for West and Central Africa, Making Finance Work for Africa (MFW4A) and the IPC, Horus and IECD Consortium hosted the ninth webinar of their series for banks and microfinance institutions (MFIs) operating in these regions. This webinar explored: “How blockchain can transform African financial digitalization and benefit SMEs”

Outcome

During this webinar, panelists discussed:

  • The solutions that blockchain can provide to African financial institutions and how it can help achieve financial inclusion.
  • How blockchain can help solve many challenges in Africa’s payments space
  • The initial capital costs of blockchain processing system
  • Understanding the legal framework enabling blockchain

 

Background

Within the context of the European Investment Bank (EIB) Technical Assistance Financial Sector Programme for West and Central Africa, Making Finance Work for Africa (MFW4A) and the IPC, Horus and IECD Consortium are hosting a series of webinars for banks and microfinance institutions (MFIs) operating in these regions.

The blockchain technology offers solutions to the challenges surrounding the SME financing gap and many other inefficiencies and problems facing SMEs. For example, smart contracts as well as safe and secure data transactions may make use of automated services to improve client satisfaction and also optimize supply chains.

As a concept, it could potentially solve many challenges — not only in payments, but also in other adjacent industries. With regards to the latter point, finding viable options to solving payments interoperability is perhaps the most critical challenge to solve in order for the digital opportunities in Africa to reach their full potential. Interoperability between the switches in the different regions — and between payment providers such as banks, FinTechs and mobile money operators — will simplify the exchange of money and trigger a significant change in payments. Additionally, leveraging the Pan-African Payment and Settlement System (PAPSS), a centralized intra-African payment and settlement infrastructure that enables instant payments across borders in local currency, is another way to achieve a stronger interoperable system.

Blockchain technology is on its way to transforming Africa’s financial digitalization. Such a digitalization process is enhancing service delivery with specific products and services through efficiently outlined data management technologies and institutional digitalization processes.

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