Pulse #21 - Reform the Constitution: Kenya says no to more men whilst Gambia says yes to more years; pursuit of the 'African language', and a Covid vaccine,
The Data Room
Nigeria’s fintech sector is primarily focused on payments and consumer lending, These segments have experienced fast growth in the past 2 years, partly owing to the central bank’s financial inclusion drive and favourable regulatory policies, including revised Know your Customer requirements and incentives to accelerate development of agent networks. Whilst customer adoption has been primarily driven by increased access and convenience, trust still has some way to go, as 67% of banking customers, say that they trust their bank more than fintech.
Numbers in the Spotlight
($89bn) can be gained by The Continent annually by curbing illicit financial flows
2,000,000 metric tonnes
(2mn) is the annual fertiliser deficit Nigeria intends to plug by 2023, in order to stop the importation of fertiliser
Nigeria is set to end fertiliser importation by 2023 as it plans to plug its 2mn metric tonnes annual deficit with local production from its now 33+ fertiliser plants. With ~70% of Nigeria’s population engaged in agriculture production, and the industry contributing ~25% to total GDP (compared to oil’s share 8.6%), agriculture has the potential to provide a larger share of annual export revenue, reducing Nigeria’s economic dependency on volatile oil prices. Improving the availability of affordable, quality fertiliser would increase crop yield and may help achieve this, as 45% of Nigerian farming households use fertilizer (more than their West African counterparts).
Essential infrastructure, personal living-space & utilities
Fintech usage in Nigeria increased by 54% in 6 months leading up to Jan-Feb 2020, driven largely by the growing number of agents, customer education, transparency in pricing and ease of money withdrawal. In response to market needs, more firms are branching out from the predominant payment and lending services into micro-investment, wealth management, peer to peer transfer and insurtech. Whilst Nigeria’s fintech sector is buzzing, attracting 25% of all money raised by African tech startups in 2019, only 40% of the population is financially included - presenting many more opportunities before Nigeria reaches is financial inclusion target of 95%
High value skills development and talent repatriation
The World Trade Organisation and Google have partnered to host a Tourism Acceleration Program in SSA, aimed at developing innovation and digital transformation skills in the tourism sector. Pre-Covid estimates put Africa's tourism industry at $262bn by 2030; however $55bn in travel and tourism revenue was lost in the first three months of the pandemic alone. With tourism representing 9% of global trade for Africa and 1 in 10 jobs (directly and indirectly), training in market intelligence and data insights may help drive consumer insights, digital transformation and innovations in the context of Covid-19, and contribute to sustainable economic recovery.