Rwanda Aims to Become Regional Financial Centre by 2050, Focuses on Compliance in Finance Industry
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Kigali, Rwanda - The government of Rwanda has set ambitious goals to position itself as a regional financial centre by 2050. To achieve this objective, the country is focusing on compliance in the finance industry and fostering innovation through fintech.
Fintech Innovation Hub
The Central Bank of Rwanda, in partnership with the United Nations Capital Development Fund (UNCDF), recently organized a two-day workshop to raise awareness on existing regulations and design legal and regulatory advisory toolkits. The event aimed to help fintech start-ups better cope with regulations and navigate the complex regulatory landscape.
Key Takeaways
- Multiple regulators committed to designating open office hours for more interaction with innovators, signaling a welcoming environment for fintech companies.
- Challenges faced by fintech providers include complexity of regulatory frameworks and lack of information on licenses and regulations.
- Participants recommended collaboration between regulators, innovation hubs, and facilitators to help fintech start-ups understand their business models and market risks.
Regulatory Services
Chris Songa Musonera, a financial sector development and inclusion analyst at the Central Bank, emphasized that the workshop helped raise awareness about the regulatory services offered by the institution and identified gaps in regulations. The regulator plans to update its regulations to accommodate fintech companies better.
Fintech Company Owners
Jean-Hubert Ishimwe Nkurayija of Favouriapps praised the training for providing valuable insights on regulatory frameworks and cybersecurity risks. He noted that the session helped him understand what he needs to do to comply with regulations and prepare his product for licensing.
UNCDF Support
The United Nations Capital Development Fund has been supporting Rwanda’s fintech ecosystem development since 2019 by conducting a fintech landscape study and setting up a fintech innovation hub. The organization aims to increase the number of compliant fintech companies in Rwanda by:
- Providing the latest insights on regulations and licenses
- Guiding start-ups to navigate the regulatory environment
- Promoting awareness of regulatory incentives to drive innovation
Financial Inclusion
Rwanda’s fintech ecosystem is expected to play a crucial role in the country’s financial development and inclusion. The National Bank of Rwanda recently re-launched its regulatory sandbox, which provides a real-customer testing environment to promote responsible innovation and protect consumers.
By focusing on compliance and innovation, Rwanda is poised to become a regional financial centre by 2050, driving financial inclusion and economic growth in the region.