Browsing: Financial literacy

Africa's financial literacy deficit

Financial knowledge remains paramount in an era in which increasingly complex financial products have become readily available to many. Governments in different countries have put more effort into expanding access to financial services. Consequently, the number of individuals with bank accounts and access to credit products is increasing.

Financial literacy remains crucial to personal and economic empowerment, enabling people to make sound financial choices and manage their finances effectively. Africa suffers from a significant shortage of financial literacy, which hinders its economic growth and development.…

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CBDCs in Africa

When CBDCs first came to the fore, many touted such a move as a game-changer in digital finance. Many had thought that the adoption of CBDCs in Africa would take the shape of the adoption of cryptocurrencies, where the region leads in many aspects. However, challenges remain. Lack of the requisite infrastructure, low levels of financial literacy, and operational and regulatory challenges have combined to contribute to low penetration and adoption rates for CBDCs.

The lack of adoption is a current failure point for many launched CBDCs. Nigeria’s eNaira had a million customers one year into its launch, a smattering of its 221 million population. The real challenge of CBDCs lies in developing a clear sense of purpose. African central banks must answer to the kind of role that CBDCs will play in the economy and financial systems.…

How does financial illiteracy impact your business and your personal wealth? Perhaps a good deal more than you might think. 

The readership of The Exchange is, of course, highly financially literate – this readership is at the other end of the scale to the majority of the population here in Africa. I believe that one of the ten top reasons that sub Saharan Africa fails to fulfil its potential is the financial illiteracy of its population and that we must change this if we are to change Africa for the better.  

Financial literacy has fallen around the world over the past 30 years. As a British businessman I am appalled at how badly we equip our children in the UK for a world order built entirely on economic foundations. There is a direct proven statistical link between financial literacy, Gross Domestic Product, home ownership, health and poverty. It is no