Luis Cambronero Pérez, Head of Partnerships and API Sales at AZA Finance has predicted that 2023 will be a big year for the local cashlite agenda – with tools such as the e-Cedi contributing largely to the transforming as more people continue to see the benefits of direct payments over cash.
According to the Head of Partnerships and API Sales at AZA Finance, digital payments can help reduce the cost and inconvenience of handling cash, which can be a significant burden for small businesses and individuals.
“We expect 2023 to be a big year for the cashlite agenda in Ghana. The e-Cedi and other digital payment tools are transforming the way people do business, and we believe this trend will only continue to grow as the benefits of direct payments over cash – such as increased security, transparency and efficiency – are already being witnessed.”
Luis Cambronero Pérez
The Bank of Ghana (BoG) in a recent account, shared with the populace its efforts made at replicating the spread of mobile money with the introduction of the e-Cedi, and this Mr. Pérez believes will deepen the use of digital payments.
In 2022, the BoG indicated that it had piloted its Central Bank Digital Currency (CBDC) with offline capabilities in Sefwi Asafo and other communities, adding that it had been well-received.
Towards the end of that same year, records reveal that around 110 countries – representing approximately 95 percent of the global Gross Domestic Product (GDP), had developed or were exploring the possibility of introducing a CBDC.
This statistic projects how digital payments have grown exponentially over the last decade, and despite concerns over the E-levy’s introduction of last year, segment leader, mobile money surpassed the GH¢1trillion mark compared to GH¢902billion in 2021.
Luis Cambronero Pérez, as a result extoled the central Bank of Ghana, for its proactivity, while also anticipating regulation to be a key component in the digital transformation drive.
The central Bank in the past year, 2022, won the RegTech of the Year award at the Ghana FinTech Awards 2022 for its innovation and notable technological contributions to the financial space.
“It is safe to say that irrespective of how much innovation is made over the next few years, regulation will determine the speed of adoption; and in the fast-paced world of technology it could be make or break. That is why we continue to commend the Bank of Ghana for its proactivity without compromising its oversight duties.”
Luis Cambronero Pérez
Funding to startups predicted to continue rising
Mr. Pérez, subsequently backed recent suggestions that funding to start-ups on the continent will continue to rise for the foreseeable future, saying Africa’s young population base should see it emerge as a winner in the tech space.
He added that, Ghana, a top-five destination for fintech funding, is poised to benefit significantly.
“Young people are the drivers and users of many of these innovative tools, and the tide continues to shift in Africa’s favor. The dynamism and potential of its young people will continue to shine.”
Luis Cambronero Pérez
In recent records, over 60 percent of the population in Africa is aged below 25 years and has therefore been projected that by 2030 young Africans will make up 42 percent of the worldwide youth population.
