Mercy Erhiawarien, intensive manager at Halycon, believes that fintech can play a significant role in bridging the gap between the African diaspora and those on the continent. In an interview with TANTV reporter Charles at the African Fintech Summit,, Mercy highlighted the significant amount of money that Africans tend to give in terms of remittances, which is more than the US government gives in overseas development aid.
“I cannot tell you the number right now, but a lot more money than the US government gives in overseas development aid. Fintech would be playing a unique role by helping to capture that money and translate it into investment for the continent. And I think that the more we’re able to encourage that kind of life cycle, I think we could see a continent that is more economically strong,” said Mercy.
Mercy went on to explain that fintech can help to make it easier for Africans living abroad to send money to their families and friends back home. She also noted that fintech can be used to provide financial services to those who are traditionally underserved by traditional financial institutions.
“Fintech plays a unique role by helping to capture that money (remittance) and translate it into investment for the continent. This is especially important in Africa, where there is a large unbanked population,” said Mercy.
Mercy’s comments come at a time when the African fintech industry is booming. According to research from McKinsey, the fintech market in Africa is expected to increase by 10% annually through 2025, totaling $150 billion (excluding South Africa). The success of fintech companies in Africa is being driven by increasing smartphone ownership, declining internet costs, expanded network coverage, and a young, rapidly growing, and urbanizing population.
As the African fintech industry continues to grow, it is clear that it has the potential to play a significant role in bridging the gap between the African diaspora and those on the continent. By making it easier for Africans to send money home and by providing financial services to those who are traditionally underserved, fintech can help to boost economic growth and improve the lives of millions of people across Africa.