G20 Summit: Digital infrastructure key to accelerating financial inclusion in Africa

Globally, 1.3 billion people (±21% of world population aged 15 and over) are ‘unbanked’, lacking an account with a bank, similar financial institution or mobile money provider.

Financial inclusion across the mostly cash-based economies of sub-Saharan Africa remains low. Only 58% of adults have an account, despite notable strides that have seen this more than double since 2011, and figures are even lower among women (52%), poor households (47%) and rural dwellers (52%).

As leaders and policymakers from the world’s major advanced and emerging economies gather at the G20 Summit in Johannesburg this week (22–23 November 2025), Professor Elizabeth Nanziri, director of the African Centre for Development Finance at Stellenbosch Business School, says there is an opportunity to make commitments that improve accessibility and usage of financial services in Africa and other developing G20 economies – enabling greater economic participation and financial resilience, thus reducing poverty for individuals and countries.

She says robust, continent-wide digital infrastructure – coupled with government policies that support fintech innovation, protect consumers and enable speedier, cheaper cross-border payments – is key to advancing financial inclusion in Africa.

“To achieve this, improved connectivity, particularly in remote and rural areas, is needed to widen access to reliable Internet and mobile technology, along with encouraging development of affordable, user-friendly digital financial services such as mobile banking options, digital wallets and online payment systems catering for low-income users,” says Prof. Nanziri.

“Governments need to create balanced regulatory frameworks that encourage the growth of fintech solutions and promote financial literacy, alongside strong consumer protection laws updated to reflect the digital environment,” she adds.

At the same time, regulations across countries must be developed and harmonised to facilitate faster, easier and more affordable cross-border financial services and reduce barriers for fintech companies.

Prof. Nanziri also highlights the role of agency banking in reaching populations that may be averse to traditional banks, or far from brick-and-mortar bank branches.

She says a supporting regulatory environment for agency banking, which expands the network of licensed agents, can address these prejudices and barriers to entry, allowing consumers to transition into mainstream financial services.

“Digital financial services can provide rapid access and lower costs, reaching remote areas quickly and efficiently, and have made financial services accessible to millions who were previously unbanked. Data- and AI-driven insights are being developed to provide alternative means of scoring creditworthiness, enabling more individuals and small businesses to access loans without traditional credit histories.

“Meanwhile, traditional banks have established trusted relationships with communities, can offer a broader range of financial products that are crucial for long-term financial health, and are beginning to embrace innovation partnerships with fintech companies that widen their reach and relevance.

“By embracing both elements, Africa can create a more inclusive financial ecosystem that empowers all individuals and businesses, regardless of their background or location.”

She says research has shown that access to credit, irrespective of interest rates, improves food security and economic self-sufficiency, and especially empowers women by giving them greater household decision-making power.

“The most important thing that needs to come out of the G20 Summit in terms of advancing and deepening financial inclusion is the establishment of robust digital infrastructure combined with comprehensive regulatory frameworks. When digital infrastructure is robust and regulations are supportive, it creates an environment where innovative financial solutions can thrive, leading to increased access for underserved populations, while increasing transaction frequency for the already served. This, combined with financial education, can significantly deepen financial inclusion and empower individuals and businesses, ultimately contributing to economic growth and stability.”

Breaking down regulatory barriers to cross-border banking is also crucial, she says, and the large footprint of South African banks on the continent provides an opportunity for host countries to benefit from the increased competition in their financial sectors.

“High transaction costs associated with the oligopolistic nature of the banking industry in many countries are one of the reasons for financial exclusion. Cross-border banking is one way of breaking this market structure through competition between local and foreign banks. Research shows that in countries where there are foreign banks, transaction costs decline, owing to a wider product menu for consumers,” shares Prof. Nanziri.

South Africa’s G20 presidency has shifted the global financial inclusion agenda from mere accessibility of financial services to the actual, meaningful usage of the available services by addressing barriers including affordability, product design and regulatory obstacles.

Prof. Nanziri says that, through the Global Partnership on Financial Inclusion (GPFI), South Africa’s presidency of the G20 in 2025 had put “tremendous resources into crafting the right policy guidelines” that would enhance financial inclusion at levels from individuals and households to small and large businesses.

The GPFI promotes and implements the G20 financial inclusion agenda, working with G20 as well as non-G20 countries and other stakeholders.

Financial inclusion refers to all people and business enterprises having access to formal (regulated), safe, relevant, affordable financial services that enable managing their money, transacting, saving, investing, obtaining credit and insurance – irrespective of gender, income or education level.

Access to formal financial systems unlocks people’s ability to participate in the formal economy, enabling access to capital to build businesses and create employment, with the benefits of accumulating interest on savings, to building financial resilience and generational wealth.

“The socio-economic implications of extending access to financial services to underserved populations are enormous. Financial inclusion remains one of the most powerful tools for advancing shared prosperity, strengthening resilience and reducing poverty,” Prof. Nanziri comments.

On specific measures that the G20 Summit could adopt to enhance financial inclusion, she highlights the following:

1. Enhancing digital financial services

• Investment in technology – encourage investments in digital infrastructure to improve internet access and mobile connectivity, especially in rural areas.
• Support for fintech innovations – promote partnerships between governments and fintech companies to develop affordable and accessible financial products tailored to underserved populations.

2. Regulatory frameworks

• Streamline regulations – develop and harmonise regulations across countries to facilitate cross-border financial services and reduce barriers for fintech companies.
• Consumer protection laws – establish strong frameworks to protect consumers from fraud and exploitation, ensuring trust in financial systems.

3. Financial literacy programmes

• Education initiatives – fund and promote financial literacy programmes that teach basic financial management, budgeting and the benefits of savings and investments.
• Targeted campaigns – focus on specific demographics, such as women and youth, to address the unique challenges they face in accessing financial services.

4. Microfinance and credit access

• Support micro-finance institutions (MFIs) – increase funding and resources for MFIs that provide credit to small businesses and individuals who lack access to traditional banking.
• Innovative credit scoring – encourage the development of alternative credit-scoring models that use non-traditional data (like mobile phone usage) to assess creditworthiness.

5. Inclusive economic policies

• Social safety nets – implement social protection programmes that provide financial support to vulnerable populations, enabling them to participate in the economy.
• Support for SMEs – create policies that facilitate access to finance for small and medium enterprises, which are crucial for job creation and economic growth.

6. Partnerships and collaborations

• Public-private partnerships – foster collaborations between governments, private sector players and non-governmental organisations to create comprehensive financial inclusion strategies.
• International co-operation – encourage collaboration with international organisations to share best practices and provide technical assistance.

7. Data and research

• Invest in data collection – data remains scant especially in Africa, so support initiatives that collect and analyse data on financial inclusion to understand gaps and measure progress.
• Research on financial behaviours – fund studies to explore the financial behaviours and needs of different populations, helping tailor services accordingly.

8. Gender-specific initiatives

• Women’s economic empowerment – Women remain financially excluded compared to their male counterparts due to low levels of literacy, lack of collateral and lack of agency. Thus, the G20 can promote initiatives specifically aimed at increasing women’s access to finance, such as female-targeted loans and business training programmes.
• Support women entrepreneurs – encourage policies that facilitate access to capital and resources for women-owned businesses.