Rwanda’s new financial technology (fintech) strategy, recently approved by the Cabinet, is expected to rake in $200 million in investments into the industry by 2029.
Rwanda is positioning itself to be a fintech hub. The government established the Kigali International Financial Centre to push for the realization of this target, in particular, to attract foreign investments and encourage the creation of highly skilled jobs in the sector.
The new strategy abuilds on the path the country has taken to make ICT and the digital economy the backbone of economic development.
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The efforts to enable local and global fintechs to establish presence in Rwanda and grow across the region while driving digital financial inclusion for Rwandans are expected to create 7,500 jobs.
The government estimates fintech companies will increase from the current 75 to 300 in the period the strategy will be implemented.
Currently, the majority of fintech firms operating in Rwanda are into payments, clearing and settlement providers, deposit lending, insurance, savings, capital raising, and crypto assets.
The strategy outlines that it will drive 80 per cent fintech adoption rate and position the country among the top 30 on the global fintech ranking and the best in Africa. It notes that there will be a standardised Fintech licensing processing time of 3 to 4 months.
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On the outlook also is domiciling 25 investment funds in Rwanda. With limited fintech-focused funds, players only access financing through agnostic funds, angel networks and grants, which provide direct means to address the start-up financing gap in Rwanda.
There are also government-backed funds such as the Rwanda Innovation Fund (RIF), and regional funds domiciled in Rwanda with fintech under their mandate, including the Virunga Africa Fund and the Fund for Export Development in Africa (FEDA).
The new strategy will generally focus on improving financial literacy, increasing access to investment and capital, enhancing regulatory guidance and clarity, developing and improving access to digital infrastructure, stimulating ecosystem collaboration, and deepening the talent pool.
In 2022, the National Bank of Rwanda launched a revised regulatory sandbox – an enabling regulatory environment that allows innovative financial services and products to be tested and deployed in a live environment with real customers within a period of 12 months.