\tThe International Monetary Fund (IMF) challenged policy makers in Sub-Saharan Africa to provide regulation to allow the success of mobile money services to be expanded\u00a0into new financial services.<\/p>\n
In a newly published whitepaper on the issue, the organisation argued a digital economy driven by these services could increase jobs and have a profound impact on economies across Sub-Saharan Africa.<\/p>\n
However, the organisation noted this outcome relied on the application of policies to help close the \u201clarge infrastructure gap\u201d in some countries, pointing to significant areas lacking access to basic internet services and reliable sources of electricity.<\/p>\n
In a blog discussing the release of the research, IMF adviser to its Africa Department, Amadou Sy, said: \u201cAfrica is well positioned to meet its fintech and digital challenges and with the right policies in place, it could reap a digital dividend.\u00a0But first, policymakers need to address the existing large infrastructure gap.”<\/p>\n
\u201cAfrica will need to balance the perennial demands of fast-moving innovation against the slower pace of regulation. Good regulation is needed but stifling innovation would be costly,\u201d he added.<\/p>\n
Industry backing
\nIn its research paper, the IMF praised the impact of telecom operator-led mobile money industries in East Africa, stating it had \u201cproved more successful in attracting users than the bank-led model that other sub-Saharan Africa countries promoted.\u201d<\/p>\n
It added in some countries uptake had been helped by one mobile operator holding a dominant market share in their core business.<\/p>\n
This, it added, provided \u201can initial critical mass of users needed to push mobile money past the niche level\u201d and meant there were no compatibility issues. Though the IMF did note this \u201craised sustainability and potential stability concerns.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
The International Monetary Fund (IMF) challenged policy makers in Sub-Saharan Africa to provide regulation to …<\/p>\n
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