FinTech regulation in Africa: Balancing innovation, financial inclusion, and systemic risk

This article examines the role of financial technology (FinTech) regulation in shaping development outcomes in Africa. While FinTech has expanded rapidly across the continent, driven by mobile money, digital lending, and innovative financial platforms, it has significantly improved financial inclusion, supported small and medium-sized enterprises, and enhanced economic efficiency. However, these gains are accompanied by emerging risks, including consumer exploitation, data privacy risks, cybersecurity threats, and regulatory fragmentation. The article argues that effective and adaptive regulatory frameworks are essential to balance innovation with financial stability and consumer protection. Drawing on existing literature and policy developments, the study highlights key regulatory approaches, including risk-based supervision, regulatory sandboxes, and regional harmonisation. It concludes that FinTech regulation should be positioned as a central component of Africa's development strategy, enabling inclusive growth while safeguarding financial systems in an increasingly digital economy.