The promise of open finance has led to a rapid proliferation in countries exploring implementation globally. However, it also comes with costs and risks — particularly as highly sensitive personal information is being made shareable. For African regulators and policymakers, open finance is an important emerging trend that requires a clear understanding and position — whether that is full implementation or something less. Furthermore, global approaches, standards, and norms have been designed for early adopters and are not always appropriate in the African context  (read more about the development and potential of open finance in Africa on our open finance page).

In partnership with the Hewlett Foundation and SMART Africa, Cenfri has had the privilege of working with the National Bank of Rwanda and the Bank of Zambia over the last two years to conduct detailed open finance feasibility assessments and develop tailored implementation approaches in each country. This synthesis note captures what we have learnt so far from global best practices and our on-the-ground experiences in Rwanda and Zambia and outlines the emerging lessons and implications for decision-makers across the continent. We believe it is important that the unique context across the continent is deliberately considered and that copy-paste approaches are avoided. This synthesis note is therefore our first version of the relevant lessons for the continent’s application of open finance. We hope to build on this further in the coming years.

Key highlights:

Local context matters: African countries must tailor their open finance strategies to their unique market conditions. For example, while smartphone-based consent models may work well in other regions, Africa’s lower smartphone penetration may require alternative methods to ensure inclusivity.

Risks to address: Data privacy and security risks, potential consumer harm, and exacerbating existing inequalities are some of the critical risks open finance could pose if not implemented carefully. These must be balanced with the benefits to ensure a safe and inclusive financial ecosystem.

Open finance implementation is a long-term process: The roadmap for implementing open finance typically unfolds in phases over five to seven years. This includes building foundational infrastructure, piloting use cases, scaling up with major financial institutions, and eventually expanding to a broader set of providers like insurance and pensions.

Rwanda and Zambia as case studies: The feasibility assessments conducted in Rwanda and Zambia highlight the differing readiness levels across countries on the continent.