TechPreneur Africa and Abu Dhabi sign FinTech agreement
TechPreneur Africa, which aims to support FinTech firms and entrepreneurs that want to increase financial inclusion and opportunities for growth across Africa, has signed a memorandum of agreement with international financial hub Abu Dhabi Global Market (ADGM).
African innovators and FinTech startups can now apply to ADGM's regulatory laboratory sandbox, which serves to provide regulatory assistance and advice to support new technology-based developments in financial services in the UAE and the Gulf Cooperation Council region. Middle Eastern firms can contact TechPreneur Africa with regard to their expansion plans in Africa.
ADGM RegLab participants are given an exemption from the normal banking regulations for a test period of up to two years so that they can develop innovative FinTech products, services or business models in a safe environment, where appropriate consumer protection advice can be given. Full regulation is reapplied after the test period ends. Expert entrepreneurial mentorship is also included.
TechPreneur Africa was launched in 2015 with the aim of encourage a 30% uptick in financial inclusion by 2020, with new mobile and other technology-based products opening up to those who lack access to financial services.
Richard Teng, CEO of ADGM, said: "The Middle East and Africa (MEA) region has tremendous demand and growth opportunities for financial services. We hope that through closer collaboration with like-minded fintech hubs, we are able to leverage the strengths and expertise of our markets to more efficiently address the needs of the industry and support economic growth and development.
"This new partnership will open up new avenues and create opportunities for fintech firms in the Middle East and Africa looking to expand into each other's markets."