Financial Crime World

Compliance Issues Haunt Congo’s Fintech Industry

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The Democratic Republic of Congo (DRC) is taking steps to increase financial inclusion and foster cooperation among fintech companies through the establishment of the Congolese Fintech Network (CFN). The network aims to create a framework for information-sharing, increased access to investment opportunities, and effective collaboration between government and industry stakeholders.

Government’s Role in Achieving Goals

According to Joel Tshilumba, a board member of CFN, the government plays a central role in achieving these goals. “We are working on several processes to establish open and regular communication channels with representatives of the Congolese government,” he said.

Fintech Companies Joining the Network

Fifteen fintech companies have already joined the network, including:

  • MaishaPay
  • Velex Advisory
  • Zando
  • Ecobank (major bank)
  • Deloitte and PWC (international organizations)

Challenges to Financial Inclusion

Despite progress made in the fintech sector, Congo still lags behind in financial inclusion. The country’s estimated 38.5% financial inclusion rate is far from meeting the government’s target of 55% by 2028.

CFN’s Goal: Advocating for Regulatory and Legislative Environment

Tshilumba hopes that the CFN can play a crucial role in advocating for a regulatory and legislative environment favorable to innovation and the development of fintech. “By working with the government and other stakeholders, we can shape policies that encourage investment, competition, and access to financial services,” he said.

The CFN follows a trend where startups across Africa are partnering with governments to create industry standards. For example:

  • In Nigeria, the startup ecosystem worked with the government to introduce a startup law that governs all startup activities.

Upcoming Conference and Expansion Plans

The network will host a physical conference called Congo Fintech Week in May, where it will release studies on its progress and goals. Additionally, CFN plans to establish branches in four of the DRC’s largest cities:

  • Kinshasa
  • Goma
  • Lubumbashi
  • Matadi