23 May 2013

Economic growth in Africa provides opportunities for the financial sector, finance and development planning minister, Mr Kenneth Matambo has said.

Mr Matambo told the Society for Worldwide Interbank Financial Telecommunications (SWIFT) African regional conference in Gaborone on May 21 that financial sector and ICT related business opportunities would increase further as the continent shifted from the current status as a source of raw materials and importer of services to an exporter of finished products.

“Similarly, the needs of the rapidly-growing African consumer market must be provided for by way of establishing efficient services sectors,” he said. The ideals, minister said required intra African investments as well as investment from countries further afield to take advantage of the continent’s rapid acquisition of skills, technologies and a growing market.

“In this respect, it is notable that trade between Africa and emerging market countries, particularly China, has grown several-fold in the last decade, thus contributing to the continent’s economic growth and diversification, and providing a reasonable cushion from the ravages of the recent global economic recession,” he said. He also noted that African economic growth rate will outpace global economic rate.

SWIFT and other providers of payments technology, he said, should continue to be an important component of the global financial flow architecture that could facilitate Africa’s expanding role in global trade and finance.

He added that regulatory framework remained important, especially following the economic recession which was triggered by the financial crisis. “Information technology and messaging products must be protected against increasing incidents of fraud, cybercrimes and other forms of criminal activities that negatively impact delivery of cost-effective financial services,” he said.

Mr Matambo said Southern Africa had been experiencing worrying trends in a crime known as “identity theft” which he said affected debit and credit cards at the most, automated teller machines (ATMs) and other modes of payment. “Such fraudulent activities have huge financial and economic costs and if not tackled effectively, they have the potential to reverse the gains in national, regional and international payments and financial flows,” the minister said.

The SWIFT conference, first to be held in Botswana, attracted 435 registered delegates from 40 countries, among them Afghanistan, Belgium, the UK, Rwanda and South Africa.  ENDS