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Fintech and the Fragmented Informal Retail Economy in Africa
Sub-Saharan Africa is home to the second-largest informal economy in the world after Latin America and the Caribbean, yet the informal traders that drive this market are underserved by traditional financial services companies and largely excluded from the formal financial system.
Innovative financial technology solutions can, however, provide a bridge between the informal economy and formal financial services, rewriting the rules of informal trade in Africa. Connecting informal merchants to digitised financial services offers the opportunity to address merchant pain points, improve efficiencies across the value chain, and ultimately boost economic growth.