Visa's Torre on the social impact of supporting fintechs in Africa

Visa, a global payments technology company, has made a significant pledge to invest at least $1 billion in Africa by 2027, with the aim of driving social and financial inclusion in the region. CNBC AFRICA recently spoke to Andrew Torre, Visa's Regional President for Central and Eastern Europe, Middle East, and Africa, to delve deeper into this commitment. Torre emphasized that Visa has been operating in Africa for the past 50 years, providing services across all 54 countries on the continent. The company has witnessed significant growth opportunities, particularly in bringing more consumers and sellers into the financial ecosystem. With a booming young population and a rising digital economy, Africa presents immense potential for expanding financial inclusion. To achieve this goal, Visa is focusing on three key initiatives: scaling operations across African markets, introducing new technology and innovation, and supporting clients and partners. One notable innovation is the ability to convert a simple smartphone into a point of sale device using acceptance software in the cloud. Additionally, Visa's global e-commerce platform and Visa Direct payment platform are helping connect individuals to various endpoints globally, enabling seamless transactions. Visa's commitment to digitize and digitally enable 15 million small and micro-sellers globally is already making significant strides, with six million merchants onboarded in Africa alone. To further support small and micro-entrepreneurs, Visa has collaborated with fintechs through initiatives like the fintech accelerator program, providing training and support to startups focused on financial services. Torre highlighted the importance of partnerships in driving socially inclusive fintech solutions. Collaborations with financial institutions, fintechs, and governments are crucial in expanding payment systems and commerce. In particular, government partnerships play a significant role in enabling digital services and enhancing financial inclusion. Torre cited examples of successful government partnerships in Kenya, Egypt, and Cote d'Ivoire that have facilitated targeted subsidies, digital IDs for small farmers, and streamlined payment processes. Addressing regulatory frameworks, Torre emphasized the importance of governments providing clarity and support for fintechs through initiatives like regulatory sandboxes. Central banks are also playing a key role in piloting new initiatives and facilitating innovation in the fintech space. Despite the challenges, Torre sees opportunities for responsible and inclusive innovation in Africa. By leveraging global innovation platforms and working closely with local players, such as fintechs, financial institutions, and governments, Visa aims to address local needs and drive financial inclusion in the region. With thousands of fintechs and entrepreneurs actively developing solutions within the payment ecosystem, Africa is poised for significant growth and innovation in the fintech sector. Visa remains committed to supporting these initiatives and driving social and financial inclusion across the continent.