Fintechs crucial to trust needed for financial inclusion: Rwanda Stock Exchange CEO

The growing emergence of fintechs in Africa represents major hope for the continent’s financial inclusion efforts. However, one serious problem that these startups often face is a lack of the investment support that is required for them to scale their activities in line with governments’ push towards more financially inclusive societies.

How fintechs can find their way around this funding conundrum was among the issues that animated conversations at the just ended GITEX Africa 2025 event in Marrakech Morocco. One panel discussion in this regard unfolded under the theme “Vision to venture – investing in African fintech.”

In an interview with Biometric Update, Pierre Celestin Rwabukumba, CEO of the Rwanda Stock Exchange and President of the East African Securities Exchanges Association, who took part in the panel, spoke elaborately on this subject, examining the funding challenges, and proposing how African fintechs can use the securities market to get funds for scale-up. He also draws the connection between fintechs and financial inclusion, noting that “without fintechs, we wouldn’t have much progress on financial inclusion efforts.”

“Fintechs play a very critical role in supporting financial inclusion. They are innovative, youthful, and dynamic. They are often led by young people who understand the needs of tomorrow. Fintechs leverage technologies like artificial intelligence and other tools to address gaps in the financial system,” Rwabukumba says.

He opines that because fintechs are at the forefront of innovation in the financial sector, they should be given “significant attention and funding to scale their impact because “their ability to understand and meet the needs of underserved populations makes them indispensable in the push for financial inclusion across the continent.”

In line with the Central Africa region, several factors have been identified as hindering financial inclusion efforts among which are a paucity of infrastructure and a weak digital identity ecosystem.

Lack of funding, a major hindrance

Rwabukumba acknowledges that indeed, African startups face serious funding problems and he believes several reasons account for this.

“First, Africans often don’t trust other Africans. Second, there is a lack of understanding among Africans about their own markets and ecosystems. Additionally, many founders have great ideas but lack managerial skills. Being a founder, innovator, or content creator is not enough to run a successful business; entrepreneurs need guidance, mentorship, and support to navigate the ecosystem,” he says.

“Founders must also be willing to work collaboratively within the broader ecosystem. At the same time, the ecosystem itself needs to understand and support early-stage companies. If these pieces come together, I don’t believe the legal framework will be the biggest obstacle. Investors consider many factors, including scale, risk, and fundamentals, before committing capital,” he shares.

He states that already, governments are increasingly playing a supportive role by creating sandboxes where startups can test their ideas before seeking investment, which means that “if an idea is validated and the right partners are secured, success becomes more achievable.”

Making the most from the stock market

The Rwanda Stock Exchange CEO says that the views he shared on the panel were not specific to Rwanda alone but to Africa in general and how stock markets on the continent can support fintech companies in raising funds.

“Stock exchanges are typically seen as exit platforms rather than early-stage development hubs. However, we recognize the need for stock exchanges to adapt their legal frameworks to accommodate the realities of African fintechs and other companies seeking to raise capital or pursue an exit strategy. Stock markets can serve both purposes: facilitate fundraising or act purely as an exit mechanism,” he explains.

He recognizes the fact that many fintechs and startups grow through alternative funding mechanisms but eventually seek to scale their offering. Therefore, he thinks stock exchanges can provide the platform for this growth.

“While some companies choose to exit through international markets like the New York Stock Exchange or the London Stock Exchange, there is potential to create pathways for these exits to occur within African markets as well. This requires collaboration across borders and continents while also making the most of existing regional and continental collaborative frameworks.”

Beyond collaboration, Rwabukumba says one other major challenge lies in adjusting regulations to accommodate startups without compromising investor protection standards.

“For instance, we can introduce regulatory sandboxes or create different layers within stock exchanges to cater to startups. In Rwanda, we have what we call the Capital Market Investment Clinic, which supports companies at various stages of development, helping them become investor-ready,” he mentions.

He says fintech and startups must have in mind the fact that investors are looking for solid opportunities, and must therefore ensure that they meet certain fundamental requirements to qualify for funding.

“At the same time, entrepreneurs need guidance to attract investment while protecting investors. As intermediaries, stock exchanges must balance both sides. The platforms are ready, but regulatory adjustments may be needed to ensure business flows efficiently. Policymakers and regulators play a crucial role in this process.”

“Some African fintechs, like Jumia, have exited through international markets. However, there is potential for African stock exchanges to collaborate and enable companies to use local or regional capital to fund their businesses. This would strengthen the ecosystem and promote intra-African investment.”

In another session at the GITEX Africa event, speakers highlighted the critical role of robust connectivity in driving Africa’s digital economy.

Article Topics

Africa  |  African startups  |  digital ID  |  digital identity  |  financial inclusion  |  fintech  |  GITEX Africa 2025  |  investment  |  Rwanda  |  Rwanda Stock Exchange  |  startup