Fintech Emerges as One of The Fastest Growing Sectors in Rwanda
Fintech has been reported to be one of the fastest-growing sectors in Rwanda. According to the 2024 Monetary Policy and Financial Stability Statements report by the National Bank of Rwanda, transfers surged significantly during the period under review.
The number of funds transfers via mobile payments surged by 57%, reaching 603 million, while their value increased by 49% to FRW 13,001 billion. Transfers through mobile banking saw a 28% volume increase (from 19 million to 24 million) and a 115% value increase (from FRW 2,347 billion to FRW 5,039 billion). Similarly, transfers via Internet banking rose by 68% in volume (from 3 million to 5 million) and by 99% in value (from FRW 5,378 billion to FRW 10,697 billion).
To support the growth of the fintech industry, the National Bank of Rwanda set up a regulatory sandbox that enables fintech innovators to test their products and enable regulators and policymakers to adapt to the latest developments driving financial services innovation further.
In a recent publication of the Global Financial Centres Index (GFCI 35), a renowned ranking that assesses the competitiveness and attractiveness of financial centers worldwide, Rwanda emerged as one of the prominent innovation hubs in Africa.
This is coming after the country raised $38 million (Partech) of startup funding in 2023, a six-fold increase from 2022. This notable surge underscores Rwanda’s commitment to attracting venture capitalists and private equity investors into its vibrant innovation and entrepreneurial ecosystem, facilitating African startups’ access to funding from within the continent.
The country’s capital Kigali now ranks 67th globally while maintaining its position as the second in sub-Saharan Africa (SSA). Furthermore, Kigali ascended to sixth place in the Middle East and African region, right behind Dubai, Abu Dhabi, Casablanca, Tel Aviv, and Mauritius. In the fintech ranking, Kigali moved up by 18 places, to 62nd globally and second in Africa after Casablanca.
Kigali’s emergence as a premier financial hub for technology and digital transformation relies on a proactive strategy. This strategy entails building robust infrastructure, ensuring widespread access to affordable, high-quality internet, overcoming regulatory challenges, and developing state-of-the-art facilities. These efforts consistently nurture an environment conducive to tech startups and bolster Kigali’s standing as a leading destination for technology-driven enterprises.
Also, the East African country has successfully attracted major players and funds such as Katapult, Virunga Fund, and more recently the Timbuktoo Africa Fund which will complement the Rwanda Innovation Fund’s efforts to foster the development of emerging startups through increased access to capital and technical support.
