Policy and regulatory developments shaping Africa’s fintech landscape (2024-2025) and projections for the coming years

In the first two blogs of this series, we highlighted key policy and regulatory developments shaping Africa’s fintech landscape, including the AfCFTA Digital Trade Protocol, Rwanda’s National Fintech Strategy, and regulatory developments in Kenya, Tanzania, and South Africa. In this final installment, we will explore projections for the future of fintech policy and regulation in Africa.

National fintech strategies
It is anticipated that more African countries will roll out national fintech policies, strategies, or roadmaps in the coming years. Already, Eswatini has recently put out a call for consultants to provide support to the country in developing its fintech strategy, which is projected to be launched before the end of 2025. While the past decade saw a strong emphasis on national financial inclusion strategies, many of which are already in place across Africa, there is now increasing attention being paid to the development of dedicated fintech strategies.

Bespoke laws for fintech activities
The African fintech regulatory landscape is likely to witness the continued emergence of bespoke licensing and regulatory frameworks tailored to specific fintech activities. This trend is particularly relevant in cases where existing laws fail to adequately address the unique challenges and opportunities presented by fintech innovations. In places like Nigeria, for example, bespoke frameworks have been introduced by the country’s Securities and Exchange Commission for robo-advisory services, crypto assets, and equity crowdfunding. Likewise, in Kenya, regulators have introduced bespoke frameworks for equity crowdfunding (Capital Markets Authority) and non-banking digital lenders (Central Bank of Kenya). It is expected that more countries will follow suit, as these bespoke laws are useful in providing clarity and certainty for fintech operators and investors.

The regulation of AI use in financial services
The growing use of artificial intelligence (AI) in financial services is poised to attract significant regulatory attention across Africa. AI-powered tools, such as credit scoring algorithms, chatbots, and robo-advisors, are revolutionising the delivery of financial services, enhancing efficiency, and expanding access. However, they also bring to the forefront critical concerns around bias, transparency, and accountability. In response to these challenges, African regulators are expected to develop frameworks that address the ethical and operational risks associated with AI. The European Union’s AI Act has set a global benchmark for AI regulation, and African countries are likely to draw inspiration from it while tailoring approaches to their unique contexts. South Africa, for instance, has already begun exploratory work on AI governance principles, which could serve as a model for other countries on the continent.

Cloud computing
As debates around digital sovereignty intensify, regulators across Africa are likely to focus on the use of cloud computing solutions, particularly those hosted outside the continent. African fintechs rely on global cloud providers, which raises significant concerns about data privacy, security, and regulatory oversight. To address these issues, countries may introduce regulations requiring financial data to be stored locally or imposing stricter controls on cross-border data flows. This shift could spur the development of more locally hosted cloud solutions, advancing Africa’s digital infrastructure while addressing digital sovereignty concerns. For instance, Nigeria has already taken steps in this direction. Reports indicate that the National Information Technology Development Agency (NITDA) has mandated the local hosting of certain types of data, including financial data, to ensure greater control and security. As these trends gain momentum, African fintechs may need to adapt by partnering with local cloud providers or investing in onshore data centres. This regulatory shift not only addresses immediate concerns around data privacy and security but also positions Africa to build a more resilient and self-sufficient digital economy.

CBDCs
The future of central bank digital currencies (CBDCs) in Africa remains uncertain, shaped by both local and global developments. While some countries, like Nigeria, have already launched their CBDCs, and others, such as Ghana and South Africa, are making significant progress, the broader adoption of CBDCs faces challenges. These include high implementation costs, technological complexities, and the risk of low public uptake. Additionally, global debates around CBDCs, such as the recent executive order by U.S. President Donald Trump halting efforts to issue a U.S. CBDC “except to the extent required by law,” may influence the pace and direction of CBDC adoption in Africa, as global trends often inform local policy decisions.
Despite these challenges, the potential benefits of CBDCs—particularly for improving cross-border payments and advancing financial inclusion—may sustain momentum on the continent. It is important to note that the initial slow uptake of CBDCs, as seen in Nigeria, does not necessarily indicate a lack of interest or signal failure. The adoption of new technologies and innovations typically follows an “S-curve,” where progress is slow at first, accelerates rapidly as adoption gains traction, and eventually plateaus as market saturation is reached. This pattern suggests that early challenges are a natural part of the adoption process rather than a definitive verdict on the viability of CBDCs.
As African countries navigate these complexities, some may reconsider or scale back their CBDC plans, while others may push forward, driven by the potential long-term benefits. The evolving global landscape, coupled with Africa’s unique financial needs, will continue to shape the continent’s approach to CBDCs in the years to come.

Cross-border collaboration
The adoption of the Digital Trade Protocol of the AfCFTA is expected to serve as a catalyst for greater collaboration on cross-border fintech issues across Africa. Already, countries like Ghana and Rwanda are exploring fintech licence passporting programmes, which aim to streamline the licensing process for fintech companies already licensed in one jurisdiction. In the coming years, we may see more initiatives among African countries designed to support fintech. These could include shared regulatory sandboxes, joint fintech hubs, and harmonised standards. Such efforts would not only simplify regulatory compliance but also create a more cohesive environment for fintech startups to operate and scale across borders. This ease of scaling is particularly critical in Africa, where market risks can vary significantly from one country to another. As one observer aptly noted, “market risks in building a business in many African countries are immensely diverse and sometimes so profound that building across multiple markets is not just a growth strategy – it’s the survival kit.”

Crypto regulation
The regulation of crypto assets will remain a hot topic, especially given the increasing market value of unbacked crypto assets, the issuance of various stablecoins, and the growing adoption of initial coin offerings (ICOs). It is anticipated that there will be increased efforts to introduce bespoke laws for crypto, as done in Nigeria, Mauritius, and Namibia and planned in Kenya, or efforts to clearly bring these assets within existing legal frameworks, as South Africa has done.

Policy enablers
As countries like Tanzania pursue their sandbox programmes and South Africa pushes toward open finance, we expect to see more African countries explore initiatives that make their fintech markets attractive for investors and innovators. We expect to see increasing initiatives toward creating supportive ecosystems, including sandboxes, accelerators, grants, and startup laws.

Cybersecurity
As fintech adoption grows, so does the risk of cyber threats. Regulators are likely to introduce stricter cybersecurity requirements for fintech companies. This could include mandatory cybersecurity audits, incident reporting mechanisms, and the adoption of international cybersecurity standards.
In conclusion, the growth of fintech in Africa shows no signs of slowing down. How African countries regulate and support this sector will be critical in determining whether the continent can fully realise its potential as a global fintech leader, much as it has with mobile money. Whatever the case, one thing that is certain is that the regulatory developments will be anything but boring. Stay tuned!

Written by Dr. Albert Puja & Prof. Vivienne Lawack of the African Fintech Law and Regulation Network (AFLARN)