The appointments bring in Sadiq Mohammed as an Independent Non-Executive Director, alongside Tunde Mabawonku and Rolake Akinkugbe-Filani as Non-Executive Directors. 

The changes take effect immediately and is part of its board-level governance structure.

Mohammed arrives with more than three decades of experience across financial markets, pensions, infrastructure, real estate and alternative investments. He founded Hexium Investments, an advisory and investment firm focused on financial services and real estate.

He also spent 28 years at ARM Group, where he held senior roles including Deputy Group Chief Executive and Managing Director of ARM Pension Managers. His work covered large-scale projects such as the Lekki Concession Company, Fara Park Estate, Beechwood Estate and Lakowe Lakes Golf and Country Estate.

He previously served on several boards across financial services and infrastructure. These include FMDQ Clear Limited and FMDQ Group. He currently sits on the boards of Meta Digital Services Nigeria Limited and DCSL Corporate Services Limited. He is also part of the ARM-Harith Infrastructure Fund Investment Committee.

Mohammed studied at Abubakar Tafawa Balewa University and also completed an Executive MBA, attending leadership programmes at Harvard Business School. He holds the Financial Risk Manager certification.

Tunde Mabawonku joins the board as a Non-Executive Director while serving as Executive Director at Wema Bank Plc, where he oversees finance, retail and digital business.

He brings more than 25 years of experience in banking and financial services. His background covers strategy, financial control, risk management, digital transformation and cost management.

He started his career at Chartered Bank and later worked at Prudent Bank. At Prudent Bank, he led performance management and cost control functions. He also held senior roles at Skye Bank, now Polaris Bank, covering financial control, human capital management and advisory functions.

Mabawonku holds a Master’s degree in Finance from London Business School and a degree in Economics from the University of Ibadan. He is a fellow of the Institute of Chartered Accountants of Nigeria and a member of several professional bodies.

Rolake Akinkugbe-Filani joins the board with nearly twenty years of experience across banking, energy, capital markets, development finance and risk advisory.

She is the founder and chief executive officer of EnergyInc Advisors, a firm focused on infrastructure financing, capital mobilisation and strategic advisory services. Her previous roles include senior positions at Zenith Bank Plc, Ecobank Group, FBNQuest Merchant Bank, Mixta Africa, Eurasia Group and Control Risks Group.

She has worked across transactions and advisory engagements involving energy and infrastructure projects across multiple markets. Her experience also covers investment oversight, capital raising and risk governance.

Akinkugbe-Filani holds a Global Executive MBA under the TRIUM programme involving New York University Stern School of Business, London School of Economics and HEC Paris. She also studied International Relations and Government at the London School of Economics. She is an honorary member of the Chartered Institute of Bankers of Nigeria.

The three new directors now join an expanded board structure at AIICO Insurance Plc. The board is chaired by Kundan Sainani, with Babatunde Fajemirokun serving as Managing Director and Chief Executive Officer.

The executive team also includes Adewale Kadri and Gbenga Ilori as Executive Directors. Other Non-Executive Directors include Ademola Adebise, Samaila Dalhat Zubairu, Folake Edun, Olalekan Akinyanmi and Raimund Snyders. Kemi Adewole serves as Independent Non-Executive Director.

The company noted that the board changes strengthen its governance framework and support long-term strategic direction.

In recent performance updates, AIICO Insurance has recorded year-to-date profits of over 21% on the Nigerian Exchange, with its share price at N4.60.

For the first quarter of 2026, the insurer posted a pre-tax profit of N5.8 billion. This compares with N5.1 billion in the same period last year.

Premium income rose to N55.4 billion from N46.9 billion. Claims also increased to N25.1 billion from N21.9 billion over the same period.

AIICO Insurance operates in a market affected by high premiums and higher claims costs, maintaining growth in earnings while expanding its governance structure through new board appointments.

According to the bank, the refreshed identity reflects its transformation and bold ambitions, signalling its drive to build an agile, inclusive, future-ready financial institution focused on meeting customers’ needs.

The new colour and logo will become effective from August 19, 2025. The new colours are deep blue, yellow, and grey, representing trust, stability, professionalism, energy, optimism, visibility, balance, and sophistication.

The bank emphasized that this strategic transformation marks a significant milestone in its drive to better serve its customers, accelerate digital innovation, and expand its footprint in the financial services sector, reflecting its renewed commitment to empowering individuals, businesses, and communities.

The unveiling of the new identity follows a solid first half of the year performance, with the bank recording a profit after tax of N14.45 billion, a significant improvement from the N7.62 billion delivered in the same period of 2024. Fee and commission income surged to  N2.44 billion, from N0.90 billion year-on-year, while retained earnings rose to N15.7 billion, reflecting the bank’s capacity to create value for shareholders.

As the new colour and logo is being applied across the bank’s communication materials, digital channels, and customer touchpoints, the bank’s corporate structure and regulatory status remain the same.

This is primarily in response to Uganda’s National Payment Systems Act 2020 and is an important part of the MTN Group’s strategy to enhance value from its fast-expanding financial technology services.

The National Payment Systems Act 2020 explicitly requires mobile money operators to establish distinct legal entities for their financial services. 

The Act states, “A payment service provider, other than an entity solely established to issue electronic money, a financial institution or microfinance deposit taking institution, that intends to issue electronic money shall establish a subsidiary legal entity for that purpose.” (Section 48(1)). 

Again, it prevents telecom operators from using airtime as a substitute for money, clarifying that “An electronic money issuer shall not— (a) count or issue airtime as electronic money; or (b) use airtime for permissible transactions.” (Section 55(2)). 

These stipulations necessitate a clear demarcation between mobile money and traditional telecom services.

This restructuring also aligns with the “Ambition 2025” strategy of the Johannesburg-listed MTN Group. 

The group is creating standalone fintech entities across its key African markets, including Ghana and Nigeria, to unlock new value, attract investors, and ensure solid regulatory adherence. 

For instance, MTN Ghana launched “New FinCo” in May 2025, and MTN Nigeria established MoMo PSB under a Payment Service Bank licence.

The proposed transaction will see MTN Mobile Money Uganda transferred to a new, independent entity. This new company will be owned by MTN Group Fintech Holdings B.V. and a trust established to represent the interests of MTN Uganda’s minority shareholders. 

The separation aims to enable both the mobile money and telecommunications businesses to pursue their respective growth paths independently within the East African market.

MTN MoMo already holds a strong footprint, particularly across West and Central Africa, with approximately 14 million active subscribers in Uganda alone. 

The mobile money services ascertained commendable growth in the first quarter of 2025, with revenues increasing by 18.4% to reach $70.8 million (Ush 255.6 billion). This financial performance stresses mobile money’s growing significance as a revenue driver, at times even surpassing traditional telecoms revenues in key regions.

The formal approval for this separation will be sought from shareholders at an Extraordinary General Meeting (EGM) scheduled for 2nd July 2025. This meeting will be conducted in a hybrid format, allowing for both physical and electronic participation. 

If approved, the transaction will result in MTN MoMo ceasing to operate as a direct subsidiary of MTN Uganda. 

Even with this internal restructuring, MTN Uganda’s listing on the Uganda Securities Exchange, where it has been an actively traded stock since its 2021 initial public offering, will not be affected. 

The transaction is subject to final regulatory and shareholder approvals.

This initiative, named the Supercharged Sandbox, is backed by the government and powered by Nvidia, to allow companies to explore and develop AI-driven tools that could bolster financial services. 

From fraud detection to stock market surveillance, the range of use cases is wide, and the expectations are high.

The sandbox will provide selected firms access to Nvidia’s high-performance computing platform, equipping them with the infrastructure they need to experiment with advanced AI models. 

This is part of Prime Minister Keir Starmer’s government aim to enhance AI adoption across the UK, not just as a user of emerging technologies, but as a key driver of innovation.

Jessica Rusu, chief data, information and intelligence officer at the FCA, spoke on the goal: “This collaboration will help those that want to test AI ideas but who lack the capabilities to do so. We’ll help firms harness AI to benefit our markets and consumers, while supporting economic growth.”

The Department for Science, Innovation and Technology (DSIT) is also directly involved, reiterating that AI integration into the UK’s financial framework is a priority at the highest levels of government. The establishment of the UK Sovereign AI Industry Forum further strengthens this intention.

The types of projects expected to go through this sandbox range from AI-powered risk modelling and algorithmic trading tools to systems designed to combat authorised push payment fraud, where criminals trick victims into transferring money under false pretences. 

These are real-world challenges that the financial sector urgently needs to address.

Jochen Papenbrock, EMEA head of Financial Technology at Nvidia, stated: “AI is fundamentally reshaping the financial sector.” He highlighted how Nvidia’s tools will allow firms to innovate securely, saying: “The sandbox will provide firms with a secure environment to explore AI innovations using Nvidia’s full-stack accelerated computing platform, supporting industry-wide growth and efficiency.”

Financial institutions that usually face technological or regulatory bottlenecks when trying to deploy new tools may find this sandbox a lifeline. 

The programme includes regulatory guidance, access to refined datasets, and domain expertise to help firms understand the guardrails they must stay within.

This follows clear direction from Finance Minister Rachel Reeves, who has publicly pushed for a more aggressive stance on regulatory reform to fuel economic progress. She recently described cutting red tape and encouraging innovation as an “absolute top priority” for the new administration.

With global competition increasing in financial technology and AI deployment, Britain’s leadership sees this sandbox as a launchpad that could enhance how financial firms build, test, and scale AI-driven services.

The testing phase begins in October

In a world marked by extreme disruptions and growing fragmentation, the need for intelligent connectivity has never been more critical.

So says Jaap Scholten, COO at eNetworks, an internet service provider (ISP), network specialist and a Datacentrix company, and head of Group Hybrid ICT Strategy at Datacentrix, who notes that connectivity is no longer a standalone, isolated item.

“Today, connectivity has become a conduit to experiences and services, and at the same time, also a gateway to security breaches. The blending of networking and security has therefore become of paramount importance. Networking is now the facilitator, the detector and the first responder to security attacks.”

The role of data centres in facilitating connectivity

Scholten outlines the importance of network peering to significantly improve the user experience, namely the interconnecting of two or more networks at a mutual point to exchange internet traffic directly; content delivery networks (CDNs), which are geographically distributed networks of proxy servers located in multiple centres, with the goal of providing high content availability and speed; and the role of data centres in concentrating ultra-low-latency interconnectivity.

“We can’t put enough fibre in the ground quickly enough to keep up with our customers’ demands for speed and bandwidth,” he explains. “And so, in response, when we design networks today, we advise our clients to place their previous on-premises infrastructure within a data centre. Here, we find very short fibres that are super-fast, with multi-Gigabyte speeds and ultra-low latency, and which are highly reliable – everything inside a data centre is highly controlled.

“The ecosystem inside a data centre provides access to cloud services, CDNs, financial services, ERP, and AI-as-a-service – to name but few options available. We are then able to configure all our clients’ branches, including the head office, to act like a remote site – as long as they have connectivity to a data centre which is constantly available. This means that if the head office, which previously would have hosted all the organisation’s IT services on its premises, goes down, the branches are not affected by the head office outage and are still able to carry on with business as usual.”

The importance of peering

Scholten notes that during the previous dial-up era of connectivity, internet traffic in South Africa between Cape Town and Johannesburg went via London and was expensive and latent.

With the building of the first internet exchange in Johannesburg in 1996, named JINX (Johannesburg Internet Exchange), access to content via this multi-provider peering point meant that the local user experience was vastly improved.

“The peering traffic inside the data centre is important,” he says. “Today, we estimate that between 70 and 75 percent of local traffic is handled between local peering networks, and access to peering is multi-Gigabyte, which means that the user experience is vastly improved. CDNs hand off content, that is web traffic, at the closest point to where it’s being consumed. For example, most popular YouTube content is served out of Johannesburg, and if your ISP is significant, it will carry a local copy of this content.

“When we look at the statistics of some of the e-commerce sites that eNetworks hosts and facilitates, 90 percent of their traffic is transferred on CDNs hosted in KwaZulu-Natal, the Western Cape and Gauteng. Apart from enhancing the user experience, this also means that the root server is generating only 10 percent of this content, which presents a significantly smaller attack surface from a security perspective. Thus, CDNs, data centres and peering traffic play a significant role in improved local connectivity.”

With regards to sovereignty, Scholten believes that the South African market is now mature enough for organisations to host data and consume cloud and security services within the borders of this country.

“Today, we can move data around, back it up and send to customers without needing to leave the borders of South Africa,” he clarifies. “In addition, into the SADC region and beyond, we have partners to provide us with access routes up the east and west coasts of Africa.”

Concludes Scholten:

“Your connectivity determines your user experience, yet every link in the chain has to be optimised and just right, otherwise the user experience suffers. Maximising new components of connectivity will boost competitive vitality and organisational adaptability.”

eNetworks is ranked as one of the top 10 most peered ISPs in South Africa, well known for its network expertise and the provision of Internet access, security and email systems.

This is according to the Access to Financial Services (A2F) Survey conducted by Enhancing Financial Innovation and Access (EFInA). 

This resulted from initiatives to provide financial services to millions of Nigerians, nonetheless, some challenges limited certain regions and demographics.

The survey revealed commendable progress in banking penetration, mobile money usage, and credit accessibility. 

Notably, Kogi State leads with 94% of its residents having access to formal financial services, followed by Lagos (91%) and Ekiti (77%). 

In contrast, states such as Borno (13%), Yobe (22%), and Sokoto (22%) show wide differences, pointing to some impediments in underserved areas.

EFInA’s report reveals that 64% of adults now use formal financial services, an increase from 57% in 2020. Mobile money adoption surged from 2% in 2020 to 12% in 2023, accompanied by a 30% rise in financial agent usage. These digital improvements help in extending services to hard-to-reach populations.

However, while 79% of men are financially included, only 70% of women enjoy similar access. Rural exclusion is also an issue, standing at 37%, compared to 17% in urban areas. These gaps stress the need for targeted initiatives to ensure equitable progress.

Key Drivers of Financial Inclusion Growth

Several initiatives have bolstered Nigeria’s financial inclusion:

1. Digital Financial Services: The rapid expansion of mobile money platforms and financial agents has helped in reaching underserved areas.
2. Targeted Programmes: Schemes like the Anchor Borrowers’ Programme and COVID-19 relief loans encouraged account openings and enhanced banking penetration.
3. Education and Connectivity: High literacy rates in states like Kogi and mobile phone ownership (99%) have contributed significantly to financial access.

Challenges

Not overlooking the challenges, financial exclusion is still high in conflict-affected regions such as Borno (68%) and Zamfara (57%). Added to this, informal financial systems are prevalent in states like Ebonyi (37%) and Benue (24%), where formal services are less accessible.

The survey also revealed disturbing financial vulnerabilities:

• 76% of adults cannot raise ₦75,000 for emergencies within a week.
• 74% experience food insecurity, and 66% struggle with medical expenses.

Opportunities for Growth in Financial Inclusion

To increase financial inclusion, EFInA recommends:

• Expanding digital and mobile money services to remote areas.
• Enhancing financial literacy campaigns, particularly targeting women and rural dwellers.
• Developing affordable, tailored financial products for underserved groups.

Closing the Gap

The progress in states like Kogi and Lagos shows that achieving across-the-board financial inclusion is possible with strategic efforts. However, replicating this success in less-developed areas will require addressing infrastructure deficits, promoting financial literacy, and fostering public-private partnerships.

EFInA’s report calls on policymakers, financial institutions, and development stakeholders to collaborate in bridging the gaps. With collaboration, Nigeria can achieve its goal of universal financial access, ensuring economic empowerment for all citizens.

These 2024 high-growth sectors are expected to continue driving economic expansion into 2025, making them focal points for investors, business leaders, and policymakers. 

Understanding the key drivers behind these trends — technological advancements, market demand, and policy support — is essential for stakeholders aiming to capitalise on investment opportunities.

In 2024, the global investment sector has been impacted by innovations in technology, healthcare, the push for sustainability, and the digital transformation of industries. 

Overview of 2024 High-Growth Sectors

Several sectors have become unignorable growth drivers in 2024, each receiving huge investment gains. These sectors include:

1. Technology

Growth Factors: With venture capital funding in AI startups reaching over $4.7 billion globally, the technology sector has been a great performer in 2024, driven by accelerated digital adoption across industries. 

The global AI market is projected to reach $190 billion by 2025, while overall spending on digital transformation is expected to hit $3.4 trillion by 2026, growing at a CAGR of 16.3% from 2023 to 2026. 

Key areas like artificial intelligence (AI), cloud computing, and cybersecurity are seeing huge investments and AI alone is projected to contribute over $15.7 trillion to the global economy by 2030. 

The semiconductor industry, a big enabler of AI and high-performance computing, has also seen huge investments. Nvidia, for example, reached a market valuation of over $1 trillion in 2024. This surge in semiconductor demand is expected to continue into 2025, particularly as industries such as automotive, healthcare, and telecommunications increase their reliance on AI technologies.

Major Players: Globally, companies like Microsoft, Meta, Google, and Nvidia have been at the forefront and have continued to invest heavily in AI research and development, focusing on areas such as generative AI, autonomous systems, and AI-driven analytics.

Locally, companies like Paystack, Flutterwave, Interswitch, Jumia, Konga and many others are leading growth in the technology sector. 

Investor Opportunities: Investors can tap into this sector by investing in tech startups, venture capital funds focused on technology, or established companies leading the AI, cybersecurity, and cloud computing spaces.

2. Renewable Energy

Growth Factors: The need for sustainability has kept the renewable energy sector growing in 2024, with investments surpassing $1.3 trillion. Global initiatives to transition to a low-carbon economy, supported by government policies, are driving this expansion. Solar and wind power remain the leading contributors, with battery storage and electric vehicles (EVs) gaining traction.

The U.S. Inflation Reduction Act (IRA), along with similar initiatives in Europe and Asia, has ensured this move toward clean energy. Global investments in solar power alone are expected to surpass $500 billion by the end of 2024, driven by corporate commitments to reducing carbon emissions and meeting sustainability goals.

In addition, energy storage solutions, particularly battery technologies, have attracted over $90 billion in investment globally. With electric vehicles (EVs) and renewable energy generation increasing, the demand for energy storage is expected to grow exponentially in 2025.

Major Players: Tesla, Vestas, and NextEra Energy are among the leaders globally. In Nigeria, Arnergy, TotalEnergies and Daystar Power, among others are leading renewable energy innovations. Tesla continues to expand its solar energy division, while Vestas secured contracts worth over €2 billion in 2024.

Investor Opportunities: Opportunities for investors include green energy projects, renewable energy stocks, or funds focused on sustainability. Local initiatives in regions like Nigeria provide additional growth potential.

3. Healthcare

Growth Factors: The healthcare sector, particularly biotech and digital health, is another high-growth sector that saw investment scale in 2024. Global funding in digital health reached $5.7 billion in the first half of the year alone. 

Advances in biotechnology, such as gene editing, personalized medicine, telemedicine, health apps and wearable health tech are bolstering healthcare delivery, with investments expected to exceed $100 billion in 2024.

The total funding for 2024, projected to reach $40 billion, could exceed the year-end totals of 2019 and 2023, which were $8.2 billion and $10.7 billion, respectively.

Major Players: Companies like Moderna, Pfizer, and CRISPR Therapeutics lead globally, while in Nigeria, Axa Mansard Health Insurance, Medsaf, Healthtracka and Helium Health, among others continue to pioneer health innovations.

Investor Opportunities: Investors can focus on biotech firms, healthcare startups, or healthcare funds. Given the ongoing innovation in telemedicine, healthtech platforms are also worth considering.

4. Telecommunications

Growth Factors: Telecommunications has been another high-growth sector, with global 5G connections approaching close to 2 billion by the end of 2024. The sector’s expansion is being driven by the global rollout of 5G and increased demand for faster, more reliable connectivity. The market for 5G is projected to grow at a CAGR of around 60% from 2024 to 2030.

Increased demand for data storage has boosted investments in data centres, with the global data centre market expected to grow from $220 billion in 2024 to $300 billion by 2027. This is particularly strong in regions like Africa and Asia-Pacific.

Major Players: Globally, major firms like Ericsson, Huawei, Qualcomm, MTN, and Airtel among others are driving 5G expansion. Nigeria’s telecommunications sector saw commendable investment, reaching $191.57 million in Q1 2024.

Investor Opportunities: Investors can target 5G infrastructure, telecom companies, or data centre developments. The growth of the Internet of Things (IoT) and smart cities presents further investment avenues.

5. E-commerce and Consumer Goods

Growth Factors: E-commerce has maintained its upward drive in 2024, with global sales expected to hit $6.3 trillion by the end of the year. Emerging markets have contributed to this surge, while advancements in logistics and last-mile delivery solutions have further driven the growth.

Digital marketing, e-commerce innovations, and direct-to-consumer (D2C) models have gained traction in 2024. The focus on efficiency in supply chains and consumer goods strategies is expected to persist into 2025.

Major Players: Amazon and Alibaba continue to lead globally. In Nigeria, Jumia and Konga remain strong e-commerce players. Logistics firms are seeing growth, and in 2024, FMCG and electronics investments surged as consumer goods companies embraced omnichannel strategies.

Investor Opportunities: Opportunities lie in investing in logistics, e-commerce platforms, or consumer goods companies to enhance their digital presence.

6. Financial Services

Growth Factors: The financial services sector is evolving with fintech innovations and digital banking. The global fintech market is expected to grow at a CAGR of 25% to 28% from 2023 to 2028.

Major Players: International and local fintech companies like JPMorgan Chase, Stripe, Revolut, Flutterwave, Paystack Opay, PiggVest and traditional banks adapting to new trends.

Other sectors like agriculture and IT services attracted $15.8 million and $171.7 in Q1 2024 respectively. 

How AI is Transforming Financial Services

What Business Leaders Should Know: 85 Days to 2025 

So many scholars, thought leaders, and philosophers have discussed the subject matter of time. Of profound note among them is Lao Tzu, the ancient Chinese philosopher and writer, who aptly noted that “Time is a created thing.” 

According to him, to say one does not have time is like saying one does not want to. Thus, as we write about the all-important topic of time and how it flies—being used, spent, or invested—we are again face-to-face with the ephemerality of time. In this context, one can easily reflect on and learn from the quality of thoughts of politicians, businesspeople, and entrepreneurs.

For instance, politicians and business leaders approach decision-making differently due to their contexts. While politicians focus on short-term electoral cycles, prioritizing immediate results to secure votes, business leaders engage in longer-term strategic planning for sustainable growth. 

They also differ in accountability. Politicians answer to voters, influencing decisions based on public opinion, whereas business leaders report to shareholders, allowing for more calculated risk-taking.

Thus, decision-making processes vary, with politicians navigating complex negotiations and public sentiment, while business leaders enjoy greater autonomy. Overall, these distinctions shape their priorities, with politicians often reacting to social issues and business leaders focused on profitability and innovation.

So, what do business leaders, entrepreneurs, and forward-looking individuals need to know as we approach 2025? In the tech world, advancements in artificial intelligence and machine learning, the rollout of 5G networks, increased focus on sustainability and green technology, growing cybersecurity needs, progress in quantum computing, the rise of edge computing, and the growth of remote work technologies are all critical areas to watch.

In the same vein, critical sectors such as renewable energy will benefit from increased government commitments to net-zero emissions and renewable energy targets, stimulating investments and initiatives aimed at expanding renewable sources. Technological advancements in energy storage, grid management, and renewable technologies, such as solar and wind, will enhance efficiency and reduce costs, making these options more competitive.  

Corporate sustainability goals will pressure businesses to adopt clean energy solutions while rising public awareness of climate change will drive consumer demand for renewables. Additionally, investment in infrastructure, including smart grids and electric vehicle (EV) charging networks, will facilitate the integration of renewable energy.

What about the financial services sector? Digital transformation will continue to be a major growth driver, with consumers increasingly favouring online and mobile banking for convenience. Regulatory changes promoting open banking and enhancing consumer protection will encourage innovation and competition. 

Furthermore, the growing interest in environmental, social, and governance (ESG) factors will push financial institutions to develop sustainable investment products. The acceptance and regulation of cryptocurrencies and blockchain technology will create new financial offerings while rising investments in cybersecurity will be crucial as digital services expand.

To capitalize on Africa’s technological landscape, businesses should leverage mobile growth, with unique mobile subscribers projected to reach 623 million by 2025. The fintech sector, which attracted nearly $4 billion in 2021, is expected to reach $10 billion by 2025, addressing the 66% unbanked population. 

With over 300 tech hubs and startup funding rising to $2.4 billion in 2020, ensuring a resilient ecosystem is important. Additionally, investing in education is essential, as Africa needs 230 million new jobs by 2030. By embracing these strategies, entrepreneurs can drive economic growth and improve livelihoods across the continent.

Meanwhile, in healthcare services, the ongoing expansion of telehealth and remote patient monitoring will improve access to care, driven by demand for convenience and safety. An ageing global population will increase the need for healthcare services, particularly in geriatrics and chronic disease management, leading to innovative care delivery models. 

Advancements in health technologies, including artificial intelligence and personalized medicine, will revolutionize diagnostics and treatment. Growing awareness of mental health issues will further drive demand for mental health services and digital therapy platforms.

DG NITDA Pledges Continued Support to Startups Advancing AI Research

A Deep Dive into Regional Specifics

In terms of investment, North America leads in AI research and investment, particularly in health tech and cybersecurity. Europe is focusing heavily on sustainability and digital transformation, while Asia-Pacific is advancing rapidly in IoT, e-commerce, and fintech.

Renewable energy in North America benefits from strong government incentives and a growing commitment to climate goals, providing a favourable environment for investments. Technological advancements in solar and wind energy, along with innovations in energy storage, are set to enhance efficiency and lower costs. Europe is leading the way in renewable energy adoption, supported by ambitious climate targets and significant investment in infrastructure. 

The European Green Deal presents opportunities for innovation and job creation in green technologies. In Asia-Pacific, rapid urbanization and energy demand in countries like China and India present significant opportunities for renewable energy deployment, particularly in solar and wind. Government initiatives aimed at improving energy access in rural areas can drive investment.

Where Do We Go From Here?

Moving forward, the resounding question is: how can business leaders, entrepreneurs, and forward-thinking individuals make sense of this wealth of information? Business leaders can position their organizations to capitalize on opportunities while mitigating uncertainties and challenges through several strategic approaches. 

First, investing in robust market research and analysis is essential for identifying trends, consumer needs, and emerging technologies, which helps anticipate market shifts and informs product development.

Diversifying product or service lines further reduces dependence on a single revenue stream, allowing the business to tap into multiple growth areas and spread risk across different markets. Forming strategic partnerships and alliances enhances capabilities and provides access to innovative technologies, but clear agreements are essential to manage expectations.

Another point of emphasis is adopting an agile business model, which allows for quick pivots based on market feedback, enhancing responsiveness to opportunities and encouraging continuous improvement. 

Additionally, investing in the latest technologies and infrastructure streamlines operations and positions the business as a leader in innovation, provided investments align with strategic goals. A comprehensive risk management framework is vital for identifying, assessing, and mitigating potential risks, and increasing organizational resilience through regular reviews and updates.

At the organizational and personal levels, focusing on talent development by investing in employee training builds a skilled workforce capable of adapting to new challenges, enhancing engagement and retention. Finally, cultivating a customer-centric approach prioritizes understanding and meeting customer needs, which builds loyalty and informs product development.

In conclusion, Africa presents a unique environment for technological advancement, driven by mobile technology, fintech, and an active startup culture. Leveraging these opportunities will enable businesses to significantly impact the continent’s economic growth and improve livelihoods for millions.

The financial services sector is taking its first tentative steps on its journey into artificial intelligence (AI) with the technology predicted to change everything from the way financial institutions detect fraud to the way they serve customers.

The bank of the future is likely to see more AI-powered talking avatars, reduced queue times and more efficiency for people looking for better deals on mortgages.

The challenge for business leaders in the coming months is to work out where AI can deliver results, and how to implement it safely and effectively.

Business leaders in the sector already recognise the transformative potential of AI, with 50% of leaders in the banking, financial services and insurance (BFSI) sector seeing AI as a ‘game changer’ according to new research.

With expectations that the biggest impact of AI will be in intelligent automation and more personalised customer services, these technology pioneers are moving quickly – 67% have already invested in generative AI for use cases such as customer service chatbots.

The rewards are potentially enormous: used correctly, artificial intelligence could add a significant amount in annual value to the banking sector, according to a 2023 McKinsey report.

The Promise of AI in African Banking

AI’s potential in banking extends across various dimensions, from improving customer service to enhancing risk management. In Africa, where financial inclusion remains a significant challenge, AI offers solutions that can bridge the gap and democratize access to financial services.

According to the World Bank, nearly 57% of adults in Sub-Saharan Africa are unbanked, lacking access to formal financial services. AI-driven solutions, such as chatbots, virtual assistants, and mobile apps, can provide personalized financial advice, budget management tools, and easy payment options, reaching underserved populations without the need for physical infrastructure.

Microloans and Creditworthiness

AI can revolutionize the microfinance sector by offering alternative creditworthiness assessments. Traditional banking models often exclude individuals without a formal credit history, but AI can analyse non-traditional data sources, such as mobile phone usage and social media activity, to assess creditworthiness. This approach can extend financial services to millions who were previously considered un-bankable.

For instance, companies like Tala have leveraged AI to offer microloans based on smartphone data. As a result, they have disbursed millions of loans to underserved populations, demonstrating AI’s power to foster financial inclusion and economic stability.

Enhancing Customer Experience

In the competitive banking landscape, customer experience is paramount. AI-powered tools can enhance customer interactions, providing timely and efficient services.

AI-driven chatbots and virtual assistants are becoming commonplace in African banks. These tools can handle a wide range of customer queries, from account balances to loan applications, reducing wait times and improving customer satisfaction.

For example, Absa Bank’s AI-powered chatbot, handles over 10,000 customer interactions daily, demonstrating the efficiency and scalability of AI solutions.

Predictive Analytics

AI’s data-crunching capabilities enable predictive analytics, giving banks insights into customer behaviour, market trends, and investment opportunities. This information allows banks to tailor their products and services to meet the diverse needs of their customers.

AI further enhances risk management and fraud detection by analysing vast datasets in real-time to identify irregularities and potential threats.

The global cost of fraud in the banking sector is staggering, with the Association of Certified Fraud Examiners estimating losses of over $3.6 billion annually. AI algorithms can quickly detect unusual patterns and flag suspicious activities, preventing fraud before it occurs. In Africa, banks like First National Bank (FNB) have implemented AI-driven fraud detection systems, significantly reduced fraudulent transactions and enhanced security.

Credit Risk Assessment

AI can improve credit risk assessment by analysing a wide array of data points, leading to more accurate lending decisions. This capability is crucial in Africa, where traditional credit data may be sparse or unreliable. AI-driven credit scoring models can incorporate alternative data, providing a more comprehensive view of a borrower’s risk profile.

Addressing Challenges

Despite its potential, AI adoption in African banking faces challenges, including concerns about job displacement, data privacy, and the digital divide.

The automation of certain banking functions may lead to job displacement. However, AI also creates opportunities for new roles focused on AI development, maintenance, and oversight.

Upskilling the workforce to collaborate with AI systems is essential for mitigating the negative impacts and ensuring a balanced integration.

Another challenge is AI’s reliance on data, that raises ethical concerns about privacy and security. Robust data protection frameworks and transparent AI practices are necessary to safeguard customer information and build trust.

A Vision for the Future

Looking ahead, the future of banking in Africa is bright, with AI playing a central role in driving innovation and growth. In the next 5-10 years, we can envision a banking sector characterized by enhanced financial inclusion, reaching even the most remote and underserved populations.

Superior customer experience. Advanced fraud detection and risk assessment capabilities ensuring a secure banking environment. Lastly, we can expect informed decision-making for business leaders, thanks to predictive analytics providing valuable insights for strategic planning and customer engagement.

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Unquestionable progress has been made with many Nigerians increasingly being onboarded into the banking industry. However, the total exclusion rates still exceed the set objectives. Today, 57.4 milllion Nigerians have BVN number out of an estimated population of over 200 million.

In February 2014, the Central Bank of Nigeria (CBN), the Nigerian Interbank Settlement System (NIBSS), the bankers committee, and deposit money banks joined forces to begin the Bank Verification Number (BVN) program.

The BVN has remained a component of the bank’s Know Your Client (KYC) standards as part of initiatives to minimize the burden associated with incorrect client identification in banking.

The CBN is dedicated to actively enlisting potential banking customers in the unorganized sector onto the BVN system after realizing the difficulty at hand.

According to Godwin Emefiele, the nation’s top bank uses the payments system as a tool to further the nation’s objectives for financial inclusion. A key component of this strategy is the BVN system, which permits the creation of credit profiles that may facilitate easier access to credit.

To increase customers’ payment alternatives and tighten up payment system regulation, the Payments System Vision (PSV) 2025 was unveiled. At the moment, BVN is supporting the creation of credit profiles for banking customers, which will aid in enhancing access to credit for credit-worthy borrowers by banks.

Deepening Financial Inclusion

Although the BVN system registration is praiseworthy, more needs to be done to meet the country’s financial inclusion goals. It is still very feasible to develop Nigeria’s economy and bring more Nigerians into the official financial system.

The informal nature of the Nigerian economy, which has a huge population of people who operate outside of the conventional banking system, is one of the main obstacles to affecting enrollment in the BVN system.

The CBN has already collaborated to this effect, but it has to be more strategic and work rigorously with other stakeholders to capture more Nigerians into the financially included group. The private sector is keen to see financial inclusion become a reality, and that calls for more partnerships.

Again, more awareness campaigns and education are required to persuade Nigerians to register for the BVN in order to improve the BVN registration system and achieve the country’s financial inclusion goals. To reach more Nigerians and promote BVN registration, financial institutions can also look into alternate channels such as mobile and digital platforms.

In order to establish an atmosphere that will encourage more Nigerians to use the formal banking system, the CBN should also keep working with the private sector and other stakeholders. This can involve offering financial services that are more reasonably priced and cater to the needs of low-income individuals and small companies, such as loans and savings products.

It is time to start going into the rural areas to meet many of those Nigerians who are financially excluded. The concentration of banks and other industry stakeholders in the cities will slow down the penetration of financial inclusion. The basics start with opening a bank account.

However, regulators must also start understanding that poor rural dwellers who earn less than a dollar may have no drive to open an account with the bank, let alone adopt digital payment channels.

The incoming administration must start initiating strategic plans that will pull Nigerians out of poverty by addressing insecurity and micro and macroeconomic issues. The country’s economic indices are all negative, and that must be addressed to pave the way for poor Nigerians to start seeing financial inclusion as something beneficial to them and the entire country.

What would you say has changed in the African financial services ecosystem over the past five years, especially as the industry’s growth is still being driven by digital transformation?

Disruptive in 1 word. We watched the transformation to true Digital Banking. For the first time, we started to see that we did not really need branches to consume banking services. NeoBanks rose up and succeeded which was strange. Then we started to consume banking services from Institutions that were not banks. Suffice it to say that our perception of banking and our perception of banks was (and continues to be) transformed at an alarming rate.

How is Qore positioned to lead innovation for meaningful advancement in the industry, given the competitive landscape for digital finance?

Digital Finance is at a very interesting point in its history. Never has it been surrounded by so much opportunity but also never has it been so challenged in Nigeria and Africa. On one hand, we have the highest number of Financial service providers ever, offering innovative products; we also have financial services stretching its territory into retail commerce (as a result of embedded banking and banking-as-service).

On the other hand, we have a high rate of financial exclusion and inefficiencies in operations (especially in lending). Qore intends to bridge this gap over the next few years by empowering these Microfinance Institutions with the exact same technology (and better technology)
that the biggest and most tech-savvy FinTechs and Banks have.

Why did you decide to register Qore as a separate legal entity?

Appzone has always existed as a venture builder with fingers in a lot of different pies. Right now though, there is a need to focus on certain deep challenges on the continent. A separate business entity with its own Executive management team
and resources is the best way to create that focus.

What is the main goal of Qore, and how does it help Africa transition to a digital banking future?

Qore’s overall objective is a completely automated and connected Financial Services ecosystem in Africa. Once every financial transaction on the continent is digital, we would have met our goal

Tell me a little more about the culture of your business and how it affects the value you offer.

Our core values are technical proficiency, innovation, courage, humility, and an entrepreneurial spirit. You can see how these values drive our culture and ultimately our output. Qorents (nickname for Qore’s team) are extremely competent though humble, entrepreneurs, innovative and courageous in the wake of enormous challenges.

What have been the main growth factors for the Qore company, historically?

Innovation and a willingness to roll up our sleeves and delve into the depth and intricacies of technology no matter how complicated and complex, have made us unique and driven our growth. We focus on the backend infrastructure and rails that most organizations rather avoid. We built a cloud-native Core Banking Application that no one else on the continent has bothered to. We have built a Financial Switch that most people rather purchase externally. This unique orientation has created the products that fuel our growth.

How are you advancing digitization of financial services in Africa through the use of strategic partnerships?

Pushing out our products into Africa, we intend to leverage and partner with distribution networks that already exist instead of reinventing the wheel. Many global brands have seen what we have built and are eager to work with us toward proliferating our services across the continent.

How has Qore affected the Nigerian and African financial services ecosystem over the past ten years?

Interesting question as we have been at the forefront of digitization of financial services since our inception in more ways than I can outline here. Our Banking-as- a-Platform service, BankOne defined the standard for financial services in the

Microfinance sector of Nigeria. Before getting into the market, digital services in Microfinance were a myth. Due to what the product has done, it’s now a standard. It’s no wonder most of the industry relies on the platform today. Our product Viacard created the culture of instant card issuance in Nigeria.

Before then it was standard to wait a week or two for your debit card. Now it takes 15 minutes. Our Pryme product disrupted Viacard and now Debit Card issuance (aka Card Vending Machine, CVM ) is self-service just like ATM cash withdrawal BankOne also facilitated the very first electronic transaction from a Microfinance Institution in the Gambia.

How are you continuing this transformation in the face of the emergence of neo-banks and digital rivals, given that your organization was a major player in the initial digitization phase of Nigeria’s financial sector?

It’s simple-we are enabling the NeoBanks and Fintechs. Most of them are operating with Microfinance licenses and building their niche services on top of our rails. From the Core Banking Applications to our API networks and lending automation tools, it’s easier for them to create more impact by leveraging what exists rather than reinventing the wheel. Together we win always.

How are you positioned to realize your vision for Africa’s developing financial ecosystem?

I have said this before, every financial transaction will be digital. Some will occur without our awareness. This will happen pretty soon.
The main challenge right now though, is that lots of financial services providers are running in a manual or semi-manual mode. This is due to a lack of affordable and accessible technology. We have started changing that.

Interestingly many Neobanks are springing up with Microfinance licenses and leveraging our infrastructure to target the same segment. Together, this future will come sooner rather than later.

How does Qore help small and medium-sized enterprises in Africa experience tremendous growth?

It is clear fact that SMEs are better financed by Microfinance banks and now Fintechs and Neobanks. As we empower them with our technology, SMEs have the enablement to do what they do best