3i Africa: IMF Deputy Director Urges Stronger Public-Private Partnerships to Advance Digital Finance Infrastructure in Africa
Deputy Director of the African Department at the International Monetary Fund (IMF), Vitaliy Kramarenko, has called on African policymakers to intensify efforts in developing digital infrastructure, fostering financial innovation, and facilitating regional trade integration as part of efforts to build a connected and resilient African economy.
Speaking at the 2nd edition of the 3i Africa Policy Forum in Accra, themed “One Africa, One Market: Driving Innovation, Investment and Impact for a Connected Future,” Mr Kramarenko noted that strategic investments in electricity access, internet penetration, and interoperable digital systems are critical to the continent’s digital transformation and economic development.
“Only half of the population in Sub-Saharan Africa has access to electricity. Internet penetration is about 33%. These are major constraints that must be addressed to drive further advances in digitalisation,” he stated, highlighting the urgent need for public-private partnerships to scale up infrastructure.
Despite the region lagging behind in traditional banking access, he acknowledged Sub-Saharan Africa’s progress in mobile financial services. Mobile cellular subscriptions now stand at about 80 per 100 people—above the lower-income average of 60, according to the World Bank. Similarly, mobile money usage has helped to bridge financial access gaps, although Kramarenko insists more progress can still be made.
Touching on digital finance innovation, he said the IMF has been working closely with central banks across Sub-Saharan Africa to promote digital payments as a gateway to broader financial inclusion and innovation. He revealed that a recent IMF survey of central banks in the region underscored three key drivers of digital finance progress: improving financial inclusion, reducing transaction costs, and the growing role of private sector innovation under strong regulatory frameworks.
“The implementation of central bank digital currencies still requires further research and strategic planning,” Mr Kramarenko added, noting that the IMF is set to publish a comprehensive paper examining the digital payments landscape in Sub-Saharan Africa. The report will cover topics such as CBDCs, fast payment systems, private mobile money platforms, and crypto assets.
He further emphasised the need for robust regulatory frameworks, capacity building, and digital literacy to support the roll-out of such digital payment systems. According to him, governments have a key role to play in developing foundational infrastructure and mitigating associated risks.
Turning attention to trade, Mr Kramarenko said digital financial systems and cross-border payments have the potential to significantly enhance intra-African trade. Citing an IMF study, he noted that a 90% reduction in tariffs and a 50% cut in non-tariff barriers—if supported by improvements in trade infrastructure and financial systems—could boost intra-African trade by 53%, trade with the rest of the world by 15%, and raise real per capita GDP by over 10%.
“Such improvements could lift between 30 to 50 million people out of extreme poverty,” he stressed.
Speaking further, he lauded the forum’s agenda, particularly sessions focused on cross-border payment interoperability, SME trade and investment connectivity, and public digital infrastructure development. These, he said, offer a timely opportunity for stakeholders to collaborate in building a harmonised and innovative African digital economy.
“The challenges and opportunities we face require a coordinated approach from central banks, financial institutions, policymakers, and the private sector,” he said. “The private sector must do more of the heavy lifting. One Africa, one market is the ultimate solution to maximise the benefits of private sector development.”
Mr Kramarenko assured that the IMF remains committed to supporting Sub-Saharan African countries in driving innovation, investment, and economic impact underpinned by macroeconomic stability.
