Mahama promised to establish $50m to strengthen Fintech industry

The Flag Bearer of the National Democratic Congress (NDC), John Mahama, has pledged to set up a $50 million Growth Fund for the booming financial technology industry if elected president in the December elections.

The fund, he said, would be administered by a separate body of eminent persons per the standards of transparency, fairness, equal opportunities and merit.

He said his government would also promote and nurture innovation hubs through public and private partnerships to harness technology to address Ghana’s development challenges.

“Working with partners, we shall establish a US$50 million fintech Transformative Growth Fund to address the teething financial needs of Ghanaian-owned fintechs,” he said.

Mr Mahama was addressing members of the country’s fintech and technology ecosystem at a special engagement in Accra last Friday.

Engagement

The meeting was to afford the NDC a deeper insight into the financial technology space to help shape the party’s policy towards the needs and aspirations of players in the industry.

He explained that under the policy, fintech innovators would be groomed to be technology entrepreneurs, build businesses on their innovations, attract investment, and create jobs.

Mr Mahama said the NDC government would improve the regulatory and supervisory environment to encourage active participation and healthy competition among diverse players within the fintech ecosystem.

“Diversity and competition drive innovation and enhance user experience, but I know that young persons with brilliant ideas eager to contribute their quota to the national agenda are facing rigidities in the application processes and the general difficult and financially constraining Fintech operational environment.”

“I will actively ensure Ghanaian participation in a buoyant, diverse and competitive fintech ecosystem for the ultimate benefit of our people,” he said.

Data

Mr Mahama told the gathering that the country could not promote digital innovations without access to data, and that his government would remove barriers to data access by providing a regulatory framework for sharing data without compromising privacy.

Among other things, he promised to bridge the gender gap in financial inclusion, and manage infrastructure and software as a service to help improve financial technology.

He also promised to help restore the licenses of banks that were unjustifiably shut down in 2019 by the current government.

The President of the Ghana Fintech and Payments Association, Martin Kwame Awagah, said the industry, although relatively new and developing had shown significant promise of changing our financial service delivery landscape for good.

“The use of technology in our financial sector has contributed immensely towards driving financial inclusion in Ghana,” he said.

He said despite the abundance of innovative ideas, limited access to funding often impeded the growth and expansion of those ventures.

To address this challenge, Mr Awagah said there was a need to foster a more supportive ecosystem that provided start-ups with access to financing, mentorship and networking opportunities.