Driving financial literacy in Africa

The President and CEO of the CFA Institute, Margaret Franklin, recently spoke about the importance of addressing the gap in financial literacy in Africa. In an insightful interview on CNBC Africa, Franklin emphasized the need for a multi-pronged approach to tap into the vast opportunities available in Africa for its young population and emerging capital markets. The discussion highlighted three key aspects: 1. **Fundamentals and Global Standards:** Franklin stressed the significance of instilling global standards in investment professionals through programs like the CFA Charterholder Program. This program aims to educate individuals early in their careers, equipping them with high ethical standards and exceptional knowledge. 2. **Skills Development and Financial Literacy**: The focus was on enhancing the skills and capabilities in capital markets, investments, and finance. Franklin pointed out the importance of fostering financial literacy among young investors to help them make informed decisions and manage their savings effectively. 3. **Thought Leadership and Advocacy:** Collaborating with societies on the ground to provide relevant research and insights to the capital markets was identified as a crucial step towards driving positive change in the industry. Franklin also shed light on the numerous opportunities available for young professionals seeking careers in the financial sector in Africa. She highlighted the pressing need for more qualified and ethically oriented professionals in the industry, making programs like the CFA Charterholder Program even more critical. With the industry constantly evolving, Franklin discussed the changing landscape of the financial sector, emphasizing the importance of incorporating new skills like sustainability, environmental considerations, and governance. The CFA Institute offers specialized certificates to address these skill gaps and ensure young professionals are well-equipped to navigate the dynamic industry. Moreover, Franklin addressed the importance of bridging the gap in project preparation within the financial industry. By combining finance with project management, the CFA program provides a comprehensive skill set that caters to diverse backgrounds, including STEM and engineering. Looking ahead, Franklin outlined the CFA Institute's vision for the future, which involves continuous innovation in its program offerings. By introducing practical skills modules and expanding their suite of certificates, the institute aims to provide structured learning opportunities for both aspiring and seasoned investment professionals. Reflecting on her time in Africa, particularly in Nigeria, Franklin expressed admiration for the warm reception she received and the significant opportunities present in the market. Despite the challenges, she commended the commitment of industry leaders to address them head-on and unlock the vast potential for growth. In conclusion, Franklin emphasized the importance of diversity and inclusivity in the finance industry, noting the positive representation of women in the audience during her interactions in Africa. As the finance sector gains prominence in Africa, she highlighted the rewarding prospects available for individuals looking to embark on a career in finance, making it an exciting and pivotal time for the industry across the continent.