This study provides a comprehensive analysis of the digital finance and its impacts on financial inclusion in Africa. While the development of the financial sector is crucial for long-term economic growth, traditional financial industry growth in Africa has been insufficient. Nevertheless, notable progress has been made in enhancing financial inclusion in alignment with Sustainable Development Goal 8, particularly since the introduction of mobile money services in Kenya in 2007. Mobile money services have emerged as a lifeline, allowing the previously unbanked to have access to affordable and secure financial services in Africa. The adoption of mobile-based financial services has rapidly expanded, with 154 out of 315 global mobile money services available in sub-Saharan Africa as of 2022. This widespread adoption has significantly reduced the proportion of financially excluded populations across Africa. However, despite these achievements, the adult account ownership rate in sub-Saharan Africa averaged only 55% in 2021. With the exception of South Africa, which has a well-established traditional financial industry, and Kenya, which has made remarkable progress in embracing mobile money, there is still ample room for improving financial inclusion throughout the African continent.

The COVID-19 pandemic accelerated the shift in the financial industry, with a surge in online payments and increased fintech activities. Lockdowns led to higher demand for contactless services, while African governments’ policies to boost non-face-to-face financial services further stimulated the use of mobile money services. Many African countries are now pursuing digital transformation strategies tailored to their needs, focusing on e-government services, digital infrastructure, and electronic payment systems. Additionally, many African countries are formulating national strategies to enhance financial inclusion by integrating low-income and marginalized populations into the financial sector. 

African countries have different strategic approaches to financial sector development, and financial inclusion. Some markets are dominated by mobile money, often led by telecom companies, while others are led by traditional financial institutions. South Africa, with a well-established traditional financial sector, is recently expanding digital finance to enhance financial accessibility, especially in rural areas and for small businesses. The government develops financial inclusion policies, supports fintech and creates innovative financial service regulations. In Kenya, the rapid growth of mobile money services, driven by a robust mobile infrastructure, has played a pivotal role in advancing financial inclusion. The government’s tailored strategy centered on mobile money has positioned Kenya as a digital leader in Africa. A series of the government’s strategies for digital transformation underscores Kenya’s commitment to digital financial development and transitioning to a digital economy. Senegal still faces financial inclusion challenges with the account ownership rate of 56%. The government’s response includes the Financial Inclusion Strategy 2022-2026, which prioritizes developing digital financial products, enhancing digital infrastructure, improving regulation, and boosting institutional efficiency for consumer protection. Senegal’s National Digital Strategy aims to create an open and affordable digital network for digital transactions and broaden access to digital services. 

The widespread adoption of mobile money in Africa significantly enhances financial accessibility for people from all backgrounds. Affordable and user-friendly mobile financial services play a vital role in improving the financial stability and risk-sharing capabilities of low-income households and small businesses, ultimately enhancing their resilience to external economic shocks. Studies find that the penetration of mobile money in Kenya facilitated financial management for low-income groups, and increased women’s labor market participation, and reduced the proportion of people living under the poverty line. Moreover, the empirical analysis using the Enterprise Survey of Kenya shows that enterprises have also experienced the beneficial effects of mobile money as it facilitates financial decision-making, which in turn fuels greater investment activities aimed at enhancing productivity and achieving innovation within their business operations.

A well-functioning financial system is essential for fostering economic growth. The international community actively supports Africa’s financial development efforts through various means, including concessional and non-concessional official development assistance. Notably, nine of the top ten donor countries to African financial sectors are in European Union, underlining their dedication to aiding the financial growth of Africa. The United States, through its USAID INVEST platform, provides regulatory and technical assistance to promote private sector investments in Africa. Japan is also significantly increasing its investments and collaboration in Africa’s financial sector, with plans to establish the‘Facility for Accelerating Financial Inclusion’to further support financial inclusion initiatives.

Africa is undergoing a rapid digital transformation, with a significant uptick in investments in tech startups. The African fintech industry is steadily increasing, with expectations that its size of investments will grow approximately 13 times by 2030 compared to 2021. Notably, more than half of the total foreign direct investments towards Africa are channeled into the fintech sector. A noteworthy trend is the increased participation of African businesses alongside the surge in foreign investments. With the expansion of e-commerce, digital trade, and e-government services, the African digital payment market is projected to grow fast, and the implementation of the African Continental Free Trade Area(AfCFTA) is expected to further boost pan-African digital payment services.

 

Based on the findings of this study, the followings are suggested for how Korea can advance its cooperation with Africa in the digital finance and financial sector in general. Firstly, Korea can actively engage in international initiatives to mitigate financial vulnerabilities and enhance financial inclusion to promote inclusive and sustainable economic growth in Africa. Leveraging its experience in enhancing financial infrastructure during its own economic development, Korea can provide advisory service and technical assistance to support financial sector development in Africa using resources from its official development assistance or in collaboration with international organizations with expertise in financial sector. 

Secondly, the Korean government should support Korean companies with regulatory and diplomatic measures to facilitate their venturing into African markets. As the success of Korean companies in emerging markets requires securing stable financing and implementing risk mitigation measures, it is important for Korean financial institutions to accompany them in the local market. Currently, Korean financial institutions displays increased interests in the African market, as evidenced by the recent cases where Korean banks indirectly investing in the African market through collaboration with regional financial institutions. Korean fintech companies, with their expertise in technology and management, can focus on the countries at the like Senegal that still has demands for improvement of digital payments. Particularly, there are opportunities to integrate digital finance solutions with e-government system. The Korean government can establish a development financial institution(DFI) to facilitate Korean investors’ activities and to promote private sector engagement and development by harnessing development cooperation resources. Additionally, the government should devise reion-specific economic strategies and engage in diplomatic efforts to foster favorable and cooperative attitutes towards Korean companies from African countries. 

Thirdly, building digital infrastructure and developing skilled workforce is important to bolster Africa’s digital competitiveness. As the digital infrastructure sector in Africa is largely dominated by European and Chinese companies, it would be practical for Korean companies to make partnerships with such foreign or local entities. To address the shortage of ICT professionals hindering the growth of the digital industry in Africa, Korea can expand its contribution in capacity building by offering ICT education and training programs in partnership with international organizations or local specialized institutions in a wider range of African countries. Additionally, Korea can support Africa’s efforts to enhance digital literacy in rural areas and marginalized communities.

Lastly, Africa’s journey towards digital transformation should be designed in the perspective of its efforts for regional integration. Africa’s digital transformation aligns with the African Union’s Agenda 2063 and the African Continental Free Trade Area(AfCFTA) agreement. The African Union aims to establish a single digital market through AfCFTA with an emphasis on digital trade and digital financial inclusion. This endeavor presents opportunities for improvement of customs and trade administration. Korea can offer a mutually beneficial partnership for Africa in its efforts to link digital finance to an integrated trade system. 

국문요약

제1장 서론

1. 연구의 배경 및 목적

2. 연구의 범위 및 구성 

3. 연구의 기여 및 정책 활용 

제2장 금융포용성 현황 및 성과

1. 금융 발전 및 금융포용성

2. 아프리카 지역의 금융포용성 현황 

3. 디지털금융을 통한 금융포용성 개선

4. 코로나19 팬데믹이 디지털금융 발전에 미친 영향

5. 소결

제3장 금융포용성 및 디지털금융 관련 정책 현황

1. 아프리카연합 및 지역공동체 정책

2. 아프리카 주요국 정책

3. 주요 협력기관 정책

4. 소결

제4장 디지털금융의 사회경제적 영향 및 향후 발전 방향

1. 디지털금융 확대의 사회경제적 영향

2. 실증분석

3. 아프리카 금융포용성 개선 과제  

4. 아프리카 디지털금융의 최근 논의 방향

5. 소결

제5장 디지털금융 분야 한-아프리카 협력 시사점

1. 아프리카 디지털금융 분야 개발협력 확대방안

2. 디지털금융 분야 민간 부문 참여 확대방안  

3. 소결

제6장 결론

1. 연구 내용 요약 및 평가

2. 협력방안 및 정책 제언

     

참고문헌

부록

Executive Summary