Transforming Rural Payments With Fintech Solutions

The digital divide often leaves rural communities behind, especially in financial services. Fintech solutions can bridge this gap by creating a financial revolution. Innovative tools can deliver secure and convenient payment options to those previously excluded. This empowers rural populations, promotes financial inclusion, and unlocks economic opportunities for all.

At the Africa Fintech Festival 2024, Esther Masese Waititu, Chief Financial Services Officer at Safaricom PLC; Collins Marita, Technical Director of Strategic Learning at Mercy Corps AgriFin; and Isaac Kamuta, Group Head of Payments, Cash Management & Client Access at Ecobank Transnational Incorporated, discussed strategies for “Revolutionising Rural Payments with Fintech Solutions.”. The session was moderated by Munyi Nthigah, Secretary General, Association of Fintechs in Kenya.

The discussions highlighted although rural folk form the majority of Africa’s population, they benefit less from digital transformation initiatives by both governments and businesses due to various reasons. These barriers include limited infrastructure, connectivity issues, high costs, and a lack of digital literacy. To empower rural populations, the experts advised the following:

Encourage Digital Literacy: The experts called for increased awareness campaigns to inform smallholder farmers about the digital tools available to them. This could be achieved through workshops, training sessions, and community outreach programs to educate farmers on how to use these tools effectively. Players could also leverage mobile technology to deliver educational content directly to farmers’ phones, helping them learn about digital financial services at their own pace.

Enhance Affordability: Subsidies or discounts on technology and connectivity costs can significantly lower the barrier to entry. Waititu highlighted initiatives by Safaricom, such as Lipa Mdogo Mdogo and Okoa Jahazi, which make it possible for smallholder farmers to acquire smartphones and internet data plans, encouraging broader participation of rural users in the digital economy. The panellists also called for increased investment by both governments and private businesses in rural areas to ensure reliable and affordable internet access, integrating communities living in those areas into the digital ecosystem.

Encourage Partnership Between the Government and Local Players: Marita highlighted the need for more collaboration and coordination between players and regulators to reach small-scale producers. He argued that public-private partnerships could leverage the strengths of both sectors to create and implement effective financial inclusion strategies. He called for the enactment of government policies that support innovation, provide incentives for fintech companies, and protect consumer rights to foster a more inclusive financial environment.

Enable the Rural Ecosystem: Kamuta asked businesses to develop technologies that would enable the rural ecosystem to benefit from financial systems through technology. “You need a technology platform that can be easily afforded by rural folks.” The experts said players in the rural ecosystem could benefit more from financial systems through technology by integrating fintech solutions with existing agricultural practices and supply chains.

The Africa Fintech Festival is the flagship event of the Africa Fintech Network, with previous editions held in Nigeria (2018), Uganda (2019), and Mauritius (2021). It serves as a vibrant convergence point for industry leaders, tech enthusiasts, innovators, and policymakers, offering a dynamic platform for dialogue, collaboration, and knowledge exchange.