Key Takeaways from AFIS 2024: Shaping the Future of Finance in Africa
Article
Held from December 5–6, 2024, in Morocco, the Africa Financial Summit (AFIS) 2024 brought together over 1,000 delegates from more than 30 countries, reflecting its status as a premier platform for shaping the future of finance in Africa. Participants included industry leaders, policymakers, and innovators from across the continent and beyond, fostering dynamic conversations on innovation and inclusion.
BCG Africa drove impactful discussions through three sessions, shedding light on transformative opportunities for the continent.
Frederic Boutet moderated “AI and Payments: Achieving a Transformative Leap in Financial Services,” showcasing how artificial intelligence is reshaping financial inclusion and customer engagement. He highlighted three transformative impacts of AI: “Artificial intelligence enables more personalized offers that fit clients’ needs and expectations. It also enhances speed and efficiency through streamlined back-office processes while mitigating risks like fraud. At the end of the day, AI is fantastic for customer engagement and financial inclusion.” By leveraging these capabilities, AI not only transforms customer experiences but also expands access to financial services for underserved populations.
Othman Omary, chairing the session “Data-driven Microfinance: What More Can Institutions and Banks Do to Elevate Impact?”, identified two critical barriers to scaling microfinance in Africa: underdeveloped digital infrastructure and fragmented markets. He emphasized the importance of hybrid people-tech operating models that account for infrastructural constraints, achieving sufficient scale to strengthen unit economics, and implementing supportive government policies to catalyze progress. Othman underscored the transformative role of innovation, stating, “Technology is the main unlocker of this potential. Using AI and the right data allows for better risk assessment and optimization of operations, which is key to scaling microfinance sustainably.”
Zineb Sqalli, Managing Director and Partner at BCG, led the session, “Women in Finance: Can gender bonds and innovative mobile products unlock a $2.5 trillion opportunity?” She emphasized that although Africa has the highest rate of women entrepreneurs globally—45% in Sub-Saharan Africa—women-led businesses face systemic financial inequities, receiving six times less funding than men. Zineb underscored the enormous opportunity represented by closing this financing gap, noting, “If we are able to close the gender financing gap, it would generate $625 billion in additional GDP—equivalent to 30% of Sub-Saharan Africa’s GDP.”
She highlighted the potential of innovative financing vehicles like gender bonds, noting, “Out of 160 gender bonds active in the world, there are only five today in Africa. This represents a missed opportunity not just to finance women-led businesses but to create a very promising and profitable investment vehicle.” She underscored the growing interest from investors and development finance institutions (DFIs) in exploring these opportunities.
Phillipa Osakwe-Okoye, attending AFIS for the second time, noted the significance of collaboration in tackling Africa’s fragmented financial landscape. She remarked, “The only way we're going to get real results is by getting key actors to collaborate in-country and across borders to build the scale needed to tackle challenges within the financial institution space.” Phillipa highlighted how AFIS fosters meaningful dialogues across critical topics like financial inclusion, payments, sustainability, and climate action, bringing together stakeholders from public and private sectors.
BCG Africa drove impactful discussions through three sessions, shedding light on transformative opportunities for the continent.
Frederic Boutet moderated “AI and Payments: Achieving a Transformative Leap in Financial Services,” showcasing how artificial intelligence is reshaping financial inclusion and customer engagement. He highlighted three transformative impacts of AI: “Artificial intelligence enables more personalized offers that fit clients’ needs and expectations. It also enhances speed and efficiency through streamlined back-office processes while mitigating risks like fraud. At the end of the day, AI is fantastic for customer engagement and financial inclusion.” By leveraging these capabilities, AI not only transforms customer experiences but also expands access to financial services for underserved populations.
Othman Omary, chairing the session “Data-driven Microfinance: What More Can Institutions and Banks Do to Elevate Impact?”, identified two critical barriers to scaling microfinance in Africa: underdeveloped digital infrastructure and fragmented markets. He emphasized the importance of hybrid people-tech operating models that account for infrastructural constraints, achieving sufficient scale to strengthen unit economics, and implementing supportive government policies to catalyze progress. Othman underscored the transformative role of innovation, stating, “Technology is the main unlocker of this potential. Using AI and the right data allows for better risk assessment and optimization of operations, which is key to scaling microfinance sustainably.”
Zineb Sqalli, Managing Director and Partner at BCG, led the session, “Women in Finance: Can gender bonds and innovative mobile products unlock a $2.5 trillion opportunity?” She emphasized that although Africa has the highest rate of women entrepreneurs globally—45% in Sub-Saharan Africa—women-led businesses face systemic financial inequities, receiving six times less funding than men. Zineb underscored the enormous opportunity represented by closing this financing gap, noting, “If we are able to close the gender financing gap, it would generate $625 billion in additional GDP—equivalent to 30% of Sub-Saharan Africa’s GDP.”
She highlighted the potential of innovative financing vehicles like gender bonds, noting, “Out of 160 gender bonds active in the world, there are only five today in Africa. This represents a missed opportunity not just to finance women-led businesses but to create a very promising and profitable investment vehicle.” She underscored the growing interest from investors and development finance institutions (DFIs) in exploring these opportunities.
Phillipa Osakwe-Okoye, attending AFIS for the second time, noted the significance of collaboration in tackling Africa’s fragmented financial landscape. She remarked, “The only way we're going to get real results is by getting key actors to collaborate in-country and across borders to build the scale needed to tackle challenges within the financial institution space.” Phillipa highlighted how AFIS fosters meaningful dialogues across critical topics like financial inclusion, payments, sustainability, and climate action, bringing together stakeholders from public and private sectors.