Commerce

Mastercard Ghana Fintech Forum advocates cybersecurity and contactless payments to drive fintech growth. (Image source: Mastercard)

Mastercard hosted the second annual Mastercard Ghana Fintech Forum in Accra, bringing together key stakeholders and thought leaders in the fintech industry to discuss critical developments and foster collaboration

Building on the success of last year’s inaugural event, this year’s gathering emphasised the importance of cybersecurity and the growing adoption of contactless payments.

The event highlighted the progress and innovation within Ghana’s fintech sector. Fintech platforms in the country are revolutionising financial services, reaching both underbanked and affluent individuals seeking sophisticated financial products and services. Recent data from the Bank of Ghana indicates a 33.4% increase in fintech transactions in Q1 2024, reaching GH¢576.03 billion (US$37.46bn).

Mastercard's Fintech Forum impact

Despite this growth, fintech companies face challenges such as regulatory hurdles, limited access to capital, and intense competition, affecting their growth and profitability. The Mastercard Ghana Fintech Forum aimed to address these issues, fostering engagement and innovation to drive financial inclusion.

“At Mastercard, we believe in the power of collaboration to overcome unique market challenges, drive innovation, and foster growth in the financial sector. The Mastercard Ghana Fintech Forum has emerged as a vital platform for these discussions, promoting fintech growth and driving financial and digital inclusion,” said Bossman Kwapong, country director for Ghana, at Mastercard. “This year’s event was particularly significant, bringing together industry leaders to share insights and forge collaborations that will drive the next wave of fintech innovation in Ghana.”

“The Mastercard Ghana Fintech Forum has proved vital in bringing together key stakeholders from various sectors of the fintech ecosystem for productive conversations that will drive innovation and financial inclusion in Ghana. At Mastercard, our commitment to playing a pivotal role in the country’s dynamic fintech ecosystem remains steadfast, as we continue to provide access to our expertise, network, and cutting-edge technologies to accelerate growth and meet evolving customer demands.” added Folasade Femi-Lawal, country manager and area business head for West Africa at Mastercard.

The event featured a panel session on “Contactless Payments – The New Paradigm.” During this discussion, Akintunde Ajayi, director, business development, fintech & enablers, EEMEA, Mastercard, said, “Contactless payments are revolutionising the financial services industry by enhancing convenience, security, and accessibility. Mastercard is committed to advancing these solutions, supporting fintechs in delivering seamless, efficient, and secure payment experiences and driving financial inclusion across the region. Today’s discussion highlighted the transformative potential of these technologies, and I am excited about the future we are building together.”

With only about 43% of Sub-Saharan Africa’s population holding a traditional bank account and over 90% payments and transactions being conducted in cash, Mastercard’s initiatives around contactless payments are part of a broader strategy to drive financial inclusion and innovation in Africa. Through collaborations and technological advancements, Mastercard is empowering fintechs to provide secure and accessible payment solutions, enabling financial inclusion for underserved and unbanked communities across the continent.

Mastercard is deeply invested in the growth and development of the fintech sector in Ghana, providing the tools, resources, and mentorship needed to scale businesses. Additionally, Mastercard’s commitment to bringing one billion people into the digital economy by 2025 aligns with its efforts in Ghana to drive financial inclusion and innovation.

DBS and Mashreq partner to offer near-instant cross-border payments via DBS Globesend, enhancing convenience and security for customers in 190 markets. (Image source: Adobe Stock)

DBS and Mashreq, two prominent financial institutions in Asia and the MENA region, have announced a partnership to offer same-day and near-instant peer-to-peer cross-border payments to Mashreq’s retail customers in selected markets across Asia Pacific, Europe, and the Americas

This service is facilitated by DBS Globesend, a cross-border payment solution that provides cost-effective, fast, and transparent payments, supporting up to 132 currencies across 190 markets. Customers will also be able to make same-day cross-border payments to popular digital wallets, catering to the increasing demand for e-commerce transactions. Additionally, payments to Singapore and Hong Kong can be tracked in real-time, offering greater certainty and peace of mind.

The demand for secure, convenient, and affordable cross-border payments is increasing, driven by the digital economy and rising volumes of international trade, investments, and remittances. Global cross-border payment flows are expected to surpass US$250 trillion by 2027, up from nearly US$150 trillion in 2017.

Kartik Taneja, head of payments and consumer lending at Mashreq, said, “We are pleased to join forces with DBS Bank to broaden our network, providing secure and seamless cross-border remittance services to meet the needs of the expanding expatriate community in the UAE. This strategic enhancement allows for global money transfers in near real-time, epitomising Mashreq’s unwavering commitment to elevating customer experience through cutting-edge innovations.”

Terence Yong, global head of sales, global transaction services at DBS Bank, said, “Global cross-border payment flows have surged as businesses, investors and talent pursue opportunities in new markets. This is especially evident in Asia which has attracted considerable business attention globally, including from the United Arab Emirates. Our longstanding relationship with Mashreq aims to facilitate the seamless flow of capital, ultimately benefitting businesses, end-consumers and communities. The collaboration also highlights the role banks can play in strengthening the connectivity of business and consumer needs between regions.”

DBS Globesend aims to simplify cross-border payments. With just one bank account and one API integration via DBS’ RAPID (Realtime APIs by DBS) platform, financial institutions and payment service providers can seamlessly route their clients’ payments through DBS’ global payout network, connecting them with over 3 billion accounts and digital wallets. This enables clients to rapidly scale their cross-border payments propositions without having to build a payout network from scratch, while more effectively managing currency liquidity.

ITU and WATRA collaborate to enhance ICT infrastructure mapping across West Africa. (Image source: Adobe Stock)

The International Telecommunication Union (ITU) and the West Africa Telecommunications Regulators Assembly (WATRA) have jointly declared their commitment to enhancing collaboration on ICT infrastructure mapping throughout West Africa 

Accurate ICT infrastructure data and mapping are crucial for shaping effective strategies. According to the partners, these resources are vital for connecting communities currently lacking access to digital services. Geospatial Information Systems (GIS) will play a pivotal role in guiding investment plans and facilitating well-informed decisions.

Possibilities of the digital economy?

Through this partnership, ITU and WATRA aim to maximise their respective initiatives and projects, avoiding redundancy, cutting costs, and accelerating efforts to integrate communities into the digital economy.

The joint declaration delineates several areas of cooperation, including advocacy, capacity building, and implementing ITU guidelines on geospatial data. Activities will encompass technical support, improved network planning, data analytics for decision-making, regional integration, and promoting transparency.

Expected outcomes include enhanced data coherence, better informed investment choices, streamlined decision-making, strengthened regional ties, and greater transparency via accessible online infrastructure information.

Advocacy efforts will highlight the significance of comprehensive infrastructure data management. Capacity building will involve shared resources and joint training sessions for member states to enhance their infrastructure and broadband mapping capabilities.

Technical assistance will focus on reviewing and updating infrastructure data, while capacity development will improve network planning insights, influencing investment decisions across the region.

The partnership also aims to foster regional integration by identifying network interconnection opportunities and gaps, encouraging new investments, and forging partnerships. Additionally, it will advocate for increased transparency and stakeholder engagement through web-based infrastructure information accessibility.

Group photo with tech leaders from Microsoft and African organisations. (Image source: Microsoft)

At an AI Summit hosted at Microsoft South Africa’s offices, several collaborators on a recently launched whitepaper gathered to discuss findings and future considerations for work and AI opportunities on the continent

Africa has a unique chance to shape the future of work as large language learning models (LLMs) continue to evolve and applications are still in their early stages. This insight comes from the "AI and the Future of Work in Africa" whitepaper, produced by Microsoft alongside various industry experts from across the continent.

GenAI: Set to transform Africa

With nearly one billion Africans under the age of 35 and projections indicating that the continent will house nearly half of the world's youth population by the end of the century, Africa is set to contribute significantly to the global workforce. Currently, up to 12 million young Africans enter the labor market annually. However, a report from the International Labour Organisation states that over 20% of these youths are neither employed nor engaged in education or training.

“We see a significant role for generative AI to not only transform work environments but also foster opportunities for the youth to create jobs, innovate, and help drive economic growth and stability across the continent,” commented Ravi Bhat, chief technology and solutions officer at Microsoft Africa.

The whitepaper suggests that generative AI is expected to significantly alter knowledge worker jobs, impacting the nature of work, required skills, and produced outputs. McKinsey research indicates that generative AI (GenAI) could drive labor productivity growth by up to 0.6% annually through 2040, contingent on the pace of technology adoption and the reallocation of worker time to other activities.

“Generative AI has significant potential to advance human capabilities,” commented Jacki O’Neill, director at Microsoft Research Africa. “As more people across Africa gain access to GenAI tools through their internet-enabled devices and more affordable data, the barriers to access are being reduced and opportunities for skilling can increase.”

“But it is not only information workers that stand to benefit from GenAI.”

The potential of GenAI to revolutionise industries such as agriculture, healthcare, and services must be balanced by preparing the youth with the skills necessary for an AI-transformed labor market, ensuring they are not left behind in this technological evolution.

Therefore, it is crucial to develop skills across the spectrum, from deploying and using GenAI tools effectively at work to building innovative applications and technologies on top of these models. This also includes advancing post-graduate skills in areas such as machine learning, natural language processing, human-computer interaction, cybersecurity, and systems, among others.