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Digitizing funding was beneficial for Africa and the Middle East in 2025 (study)


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15.11.2018 at 20:18

According to a study by a well-known Mckinsey company, digitizing funding will benefit from Africa and the Middle East by 2025 as it will promote the inclusion of 400 million new customers into the financial system, said Thursday in Dakar, Thameur Hemdane, Co Chair of Participatory Funding for Africa and the Mediterranean (FPAM) "Digitizing funding will benefit from Africa and the Middle East by 2025 as 400 million people will be included in the recent financial system. There will be $ 758 billion in new deposits. $ 448 billion will be provided in new credits for SMEs and individuals. Reducing public spending and tax avoidance for the states will be $ 20 billion a year, "according to the Mckinsey study indicated by Thameur Hemdane.

The participating chair of the Participatory Funding of Africa and the Mediterranean (FPAM) took part in the Forum of crowdfunding in Africa focusing on the theme of "financial innovation for development".

On behalf of it, Laurent Gonnet, Senior Bank Expert Specialist at the World Bank (WB), reviewed the reforms in place to boost money digitization in Africa and the Middle East.

The first amendment is concerned with interoperability because according to Mr Gonnet, "someone who has a Orange Money account in Senegal must be able to make a transaction with someone who has a bank account in Côte d'Ivoire. , regional integration will be shaped and competition will exist between mobile operators and banks ".

For it, this global market will develop the use of electronic money. That is why, "The Central Bank of the West African States (BCEAO) has set a horizon of 2 years since this interoperability is a reality," he said.

Laurent Gonnet also spoke about the regulation on payment methods that he was urgent to modernize to capture the possibilities offered by digitization. In the opinion of this leading financial sector expert in the World Bank, the bank intermediaries system "will be at the heart of a small banking revolution".

Indeed, he said, there is a huge expansion of mobile network operators such as Orange and Tigo based on distribution agents to drive the financial market.

The ban on conventional banks using this approach can be soon in the past. "Banks have only one possibility: open an agency. We would like to offer them the possibility of recruiting agents that could play the role of distributing products. The World Bank and Central Bank are currently working on the bank intermediaries system, "said Gonnet.

In its analysis, a World Bank expert argued that "the digital will take more in the banking sector but banks have not been equipped in this area yet to reach the forces with opening cheap accounts in remote areas".

So, to take advantage of digitization, Laurent Gonnet urges banks to study "Post Office Post Office (Angola) in the successful story that has benefited from a new regime for the distribution of agents instead of branches."

He also talked about the Fintech (financial technology companies). Because they appear on the continent, Laurent Gonnet hopes that "within 6 months or even 1 year, agreement on the Fintech regulatory framework" will see the day.

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