Mr. Kwabena Boateng, Divisional Director of Corporate and Institutional Banking at Fidelity Bank Ghana, has emphasized the necessity for African businesses to embrace digital transformation and foster strategic collaborations to maintain competitiveness.
Speaking at the Ishmael Yamson & Associates Business Roundtable, he stressed that companies must form partnerships beyond local borders, highlighting the theme, “African Businesses: Collaborating for Global Success.”
Mr. Boateng highlighted the rapid digital transformation sweeping across Africa, particularly noting the significant increase in mobile phone and internet usage in Ghana and other regions. “Over the past decade, internet users in Ghana have grown from 5.3 million to approximately 24 million, indicating the deep integration of internet usage in society,” he remarked.
This surge in internet penetration underscores the critical need for businesses to leverage this data effectively to enhance digital banking services.
The rise in internet usage has paralleled a shift towards digital payments in Ghana. In the past year, 64 percent of Ghanaians initiated digital payments, marking a significant departure from traditional banking methods.
Despite this progress, debit card usage remains low at around 18 percent, primarily due to the widespread use of mobile money. This trend reflects the broader movement towards digitization in financial services across the continent.
Success Stories of Regional Expansion and Collaboration
Highlighting successful examples of regional expansion, Mr. Boateng cited Ghanaian company ZeePay’s acquisition of a 51 percent stake in a Zambian company as a model of effective collaboration and growth.
Mr. Boateng expressed confidence that strategic partnerships between banks and FinTechs will pave the way for global success. “Strategic partnerships between banks and FinTechs will lead to global success,” he asserted, acknowledging the challenges but also the immense opportunities available to African businesses.
The rise of African FinTech companies such as M-Pesa and EcoCash demonstrates the transformative potential of digital financial services. These companies are revolutionizing financial services, cross-border payments, and agricultural productivity across the continent.
“Imagine the possibilities if telecommunication companies join forces with local fintech startups, replicating the success of M-Pesa by Safaricom. This could lead to groundbreaking mobile banking solutions across the continent,” Mr. Boateng envisioned.
Collaboration on Critical Infrastructure Projects
Beyond financial services, Mr. Boateng underscored the importance of collaboration on critical infrastructure projects, including transportation and energy. Such partnerships are essential for driving sustainable economic growth and improving the overall business environment in Africa.
Referring to regional trade agreements and initiatives like the African Continental Free Trade Area (AfCFTA), Mr. Boateng called for policies that promote openness and reduce barriers to cross-border trade and investment. These measures are crucial for facilitating smoother transactions and fostering a more integrated African economy.
Mr. Boateng’s remarks at the Ishmael Yamson & Associates Business Roundtable highlighted the vital role of digital transformation and strategic collaborations in driving the success of African businesses. As internet usage and digital payments continue to rise, businesses must harness these advancements to innovate and expand.
By forming cross-border partnerships and focusing on key infrastructure projects, African businesses can unlock new opportunities and achieve sustainable growth. The ongoing efforts to reduce trade barriers and promote openness will further support these endeavors, paving the way for a thriving and interconnected African businesses.
READ ALSO: ANC’s Top Officials Meet To Plan Coalition Formation
