Consolidating Africa’s Mobile Banking Revolution: High-Level Roundtable

The financial services sector in Africa is changing rapidly, led by the digital revolution in information and communications technology, and the proliferation of banking, insurance, payments systems and other financial institutions. M-Pesa, Kenya’s digital financial service is at the centre of it all. It has revolutionised Kenya’s payments technology, enabling the country to diversify its portfolio of financial services, and it has had a dramatic impact on financial inclusion. In 2013, 67% of Kenyans could access formal financial services, up from only 26% in 2006. Similar initiatives are underway in many other African countries, including Tanzania, Rwanda, South Africa, Nigeria, Ghana and Cote d’Ivoire.

Although there have been pockets of success, it has been difficult to replicate the mobile banking revolution, even in countries with similar financial inclusion challenges. Many contend that adopting ‘enabling regulation’ is central for the expansion and consolidation of Africa’s digital services revolution, but there is a lack of clarity on what precisely this entails and how it can be pursued. Important questions remain about what regulatory approaches facilitate the take-off and deepening of digital financial services; the best ways to support cross-border payments; how to navigate the politics of regulatory design and implementation; and the impact of expanding digital financial services on financial stability and monetary policy.

This high-level roundtable will bring together senior government regulators, market participants, academics, and selected officials from multilateral organisations to critically assess and share experiences of regulating digital financial services in Africa. Comparing experiences across countries, we will ascertain the main challenges and opportunities for regulators; distil practical lessons; and specify areas for future policy-relevant research.