Rwanda’s recently approved fintech strategy, endorsed by the Cabinet, aims to attract $200 million in investments into the industry by 2029.
The country is positioning itself as a fintech hub, with the government establishing the Kigali International Financial Centre to draw foreign investments and foster the creation of skilled jobs in the sector.
This strategy builds on Rwanda’s ongoing efforts to make ICT and the digital economy key drivers of economic growth.
The plan seeks to help local and international fintech companies set up in Rwanda, expand across the region, and promote digital financial inclusion, with an anticipated 7,500 jobs created.
The government expects the number of fintech companies to rise from 75 to 300 during the implementation period.
Currently, most fintechs in Rwanda operate in areas such as payments, clearing, lending, insurance, savings, capital raising, and crypto assets.
The strategy aims for an 80% fintech adoption rate and seeks to position Rwanda among the top 30 countries globally for fintech and the top in Africa. It also sets a fintech licensing process timeline of 3 to 4 months.
Additionally, the goal is to domicile 25 investment funds in Rwanda. As fintech-focused funding remains limited, companies often rely on agnostic funds, angel investors, and grants to fill the startup financing gap.
There are also government-backed funds like the Rwanda Innovation Fund (RIF), along with regional funds, such as the Virunga Africa Fund and the Fund for Export Development in Africa (FEDA), which include fintech in their scope.
Overall, the strategy focuses on improving financial literacy, enhancing access to capital, providing regulatory clarity, boosting digital infrastructure, encouraging ecosystem collaboration, and expanding the talent pool.
In 2022, the National Bank of Rwanda introduced a revised regulatory sandbox, which allows innovative financial services and products to be tested with real customers over a 12-month period.
