Open Banking, which is already gaining popularity in Europe and parts of Asia, is now becoming a crucial factor in Africa’s digital financial transformation. The continent’s dependence on mobile money, along with a growing range of fintech solutions, creates a promising environment for Open Banking.
According to Agpaytech’s latest research report, this initiative has the potential to transform Africa’s financial ecosystem, unlocking opportunities for financial inclusion, fintech innovation, and economic growth.
The report highlights that Nigeria, Kenya, South Africa, Ghana, and Rwanda are leading in Open Banking adoption. These nations have introduced regulatory guidelines and frameworks to encourage financial data sharing while ensuring consumer protection.
Nigeria
Nigeria is at the forefront of Open Banking regulation in Africa. The Central Bank of Nigeria (CBN) issued official Open Banking guidelines on February 17, 2021, making it the first African country to provide a structured regulatory framework for Open Banking. The Nigeria Open Technology Foundation (NOTEF) has played a crucial role in developing standard APIs to facilitate secure data sharing among financial institutions and fintech companies. With a rapidly growing fintech sector, Nigeria’s Open Banking framework is poised to enhance digital financial services and drive financial inclusion.
Kenya
Kenya, known for its mobile money success with M-Pesa, has also made strides in Open Banking. The country follows the European Payment Services Directive 2 (PSD2) model, promoting secure data-sharing mechanisms. While the Central Bank of Kenya (CBK) has yet to issue specific Open Banking regulations, fintechs and banks have embraced the framework through collaborative initiatives. The government has hinted at incorporating Open Banking into its broader digital financial strategies to enhance interoperability among financial service providers.
Read also: Here are ways open banking can boost Nigeria’s fintech market
South Africa
South Africa has a well-developed financial sector and is actively exploring Open Banking regulations. In November 2020, the South African Reserve Bank’s (SARB) National Payment System Department (NPSD) published a consultation paper on Open Banking. While official regulations have not been fully implemented, the country’s banking sector is already leveraging Open Banking principles, with major banks allowing third-party integrations. South Africa’s approach to Open Banking aligns with global standards and emphasizes consumer protection and data security.
Ghana
Ghana has taken significant steps toward Open Banking, incorporating it into its National Payment Systems Strategic Plan (2019–2024). The Bank of Ghana (BoG) has shown interest in establishing regulatory guidelines to facilitate Open Banking adoption. The country’s fintech industry is growing rapidly, and many fintech firms are integrating Open Banking APIs to offer innovative financial products. While the regulatory framework is still evolving, Ghana is expected to introduce formal Open Banking regulations soon.
Rwanda
Rwanda is positioning itself as a digital financial hub in Africa and has included Open Banking as part of its Five-Year Digital Economy Strategy. The Rwandan government is taking a regulatory-led approach, emphasizing data access and management. In December 2024, Rwanda released a draft directive on Open Banking, with plans to implement technical standards in 2025. The initiative aims to enhance financial interoperability and encourage innovation in the financial services sector.
