Industry players in Kenyas financial technology space are calling for more collaborations between banks and fintechs to strengthen the sector.
Speaking during the 2024 Private Enterprise Africa Venture Summit hosted by audit, tax and advisory services firm KPMG, the experts set their spotlight on the future of fintech and tax compliance by African enterprises.
The two-day event has brought together investors, entrepreneurs, policymakers, and industry leaders with a focus on collaboration, innovation, and sustainable financing.
Africa Fintech Network Vice President, East Africa and executive board member Ali Hussein Kassim, said the event underscores fintech's role in revolutionising financial services and the imperative of maintaining rigorous tax compliance amid evolving regulatory landscapes.
"Policy makers and regulators must come together to regulate open banking. It is high time that fintech and banks collaborate for the growth of the financial market," said Ali Hussein Kassim.
During the discussions, Ngina Mutava, Associate Director of the Strathmore Tax Research Center, highlighted the challenge of tax compliance.
"Government expenditure is seen as if the GDP is growing while in reality, most of the government projects, such as the SGR, pump money into the economy without paying taxes directly. Our tax base is very small; we need to widen the tax bases," she stressed.
With speakers drawn from different disciplines within the ecosystem, the summit presented innovative solutions, strategies, and policy recommendations to promote sustainable financing and investments.
Eric Maina, Senior Business Development Manager at Visa, highlighted the potential of mobile banking and digital payments/wallets to transform financial inclusion in Africa, emphasizing the significant uptake by youth in these models.
Other discussions covered gender lens and impact investing, deal structuring, and sustainable financing using local currencies.
According to investment analyst at Verod-Kepple Africa Emanuel Wanjuu, if Africa can have more local capital, it will have a clear understanding of the market without exits.
The summit comes at a time that the region is witnessing a reduction in funding from investors.
According to Disrupt Africa’s African Tech Startups Funding Report, investment in African startups fell by around 27 percent in 2023, while the number of investors dropped by half.
These are among the issues KPMG says its experts will explore and the discussions on fostering high-impact ventures and shaping the future of funding in Africa.
The summit, which is set to usher in a new era of economic opportunity and innovation across the continent, aims to shape the future of funding in Africa through impactful ventures and strategic partnerships.
