MicroSave Consulting (MSC), in partnership with the Mastercard Foundation, Deloitte and the Africa Fintech Forum (AFF), announced the development of the first multidimensional FinTech ecosystem network in French-speaking Africa

MicroSave Consulting (MSC), in partnership with the Mastercard Foundation, Deloitte and the Africa Fintech Forum (AFF), announced this Wednseday 16 December 2020, that they are working to develop the first multidimensional FinTech ecosystem network in French-speaking Africa.

Emerging technologies create job opportunities and offer the possibility of reducing the costs of distributing products and services adapted to advance financial inclusion. By creating technology products and solutions, such as mobile money, online payment processing, loans and investments, FinTechs are filling important gaps that exist in local financial services industries. 

Across the African continent, FinTech companies have raised $ 320 million in funds since the start of 2015. Ecosystem growth has jumped 60% over the past two years and the number of technology centers has doubled in the past two years. According to the World Bank, by 2021, 62.5% of fast-growing African economies will be in French-speaking Africa, where the young population is significant. 

Driven by FinTechs, financial inclusion remains the main focus for tech and digital venture capitalists across the continent, attracting 54.5% of total funding. Women-led or co-founded FinTechs have sprung up, but in several countries they have yet to find a place in the sector. 

The market is ripe for innovation, but it will take a collective effort to address the current shortcomings: regulatory constraints, weak legal systems, lack of financial and digital literacy, and lack of credit history. It is in this context that MicroSave Consulting (MSC), and its partners Mastercard Foundation, Deloitte and the Africa Fintech Forum (AFF), have decided to create a map of the entire FinTech ecosystem in French-speaking Africa. Africa Fintech Forum sets itself the objective of promoting FinTech, insurtech, artificial intelligence, Big Data ... and of positioning financial technologies at the heart of Africa's development policies and strategies. The AFF wants to demonstrate that FinTech is a powerful lever for economic and social development and governance in Africa.

Consulting firms Deloitte and MSC believe in the power of the ecosystem to create impactful projects, and wish to support key players in this process by placing financial technologies at the heart of Africa's development policies and strategies. 

Together, they launched the mapping of the FinTech industry in 24 French-speaking African countries. The ambition is to make this first, for the entire African FinTech industry, a collaborative and inclusive study carried out by the FinTech community in the French-speaking area. 

Thus, MSC and its partners wish to involve all local actors in the mapping of their ecosystem. This mapping will be accessible on the Digital Finance Hub, a site more broadly dedicated to the digital finance ecosystem which brings together all the French-speaking information that exists on the sector. 

This website, www.lafinancedigitale.com, provides information that allows you to better understand the landscape of this ecosystem in French-speaking Africa, including incubators, mentors and investors and all the actors operating in the financial inclusion and innovative solutions sector. It also provides tools to support the development of projects and ensure a better impact, thus allowing better financial inclusion.

In Africa, half of the start-ups created in the last decade no longer exist, according to a survey carried out by Weetracker and published in the report "The Better Africa". However, while Africa has a failure rate of over 50%, these statistics are relatively low compared to those of the United States with a failure rate of 67% over two years, and India with a 90% failure rate over five years. If the starter game is about the survival of the fittest, it's also a game where community is power. The Digital Finance Hub website also offers a wealth of information on the digital finance sector, studies, videos, job offers, and a calendar of industry events in Africa. It is distinguished by special training provided to individuals and organizations.

About MSC MicroSave Consulting (MSC) is a specialized consulting firm which, for 20 years, has accompanied the world towards true financial, social and economic inclusion. With 11 offices around the world, around 190 employees of different nationalities and varying skills, we are proud to work in more than 50 developing countries. We work in partnership with the players in the financial services ecosystems in order to sustainably improve performance and generate lasting value. Our clients are governments, donors, private sector companies and local businesses.

The Mastercard Foundation works with visionary organizations to help African youth and those from Indigenous Canadian communities access decent and fulfilling jobs. One of the largest private foundations in the world, it works to advance education and promote financial inclusion to create a more just and inclusive world. Created in 2006 by Mastercard, the Foundation operates independently under the governance of its own board of directors. To find out more about the Foundation, please visit: www.mastercardfdn.org

Deloitte refers to one or more member firms of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are independent and legally separate entities. DTTL does not provide services to customers. For more information: www.deloitte.com/about.

Africa Fintech Forum Africa Fintech Forum is a non-profit, cross-industry organization with the ambition to: Promote and advocate for FinTech. Develop training and promote the education necessary for financial innovation. 

Encourage the sharing of business opportunities and build bridges of collaboration between actors of the African and international ecosystem. Provide and disseminate the keys to understanding the industry through studies and research. Build a fintech ecosystem for Africa to transfer skills and share knowledge between actors. Develop and support centers of innovation and experimentation to accelerate innovative, inclusive and impactful technologies in Africa.

Cassien Tribunal Aungane, Editor