Stablecoins: Powering the Next Generation of Finance for Africa
2024 Theme
Small and medium enterprises (SMEs) are the backbone of economies worldwide, accounting for over two-thirds of global employment and playing a critical role in job creation and economic resilience. However, persistent financing gaps limit their potential to drive inclusive growth and recovery from economic shocks.
The G20 Global Partnership for Financial Inclusion (GPFI) MSME Action Plan provides a timely framework to address these challenges, fostering resilience and innovation among SMEs while aligning with sustainable development goals (SDGs). The Global SME Finance Forum, an official side event of the G20 South African Presidency, will present GPFI’s comprehensive roadmap to address the systemic barriers hindering SMEs’ access to finance.
G20 MSME Action Plan: Financing and Policy Enablers
Resilient Value Chains: Strengthen sustainable sourcing, fair labour practices, and circular economy models to future-proof SMEs against disruptions.
Tailored Financial Solutions: Provide customised financial tools to promote the financial health and stability of micro and small enterprises.
Scaling Success Stories: Highlight examples of SMEs achieving growth through innovative financing models and sustainable business frameworks.
Digital Innovation: Powering SME Growth and Global Competitiveness
Value Chain Integration: Highlight success stories of SMEs scaling through digital integration, such as streamlined supply chains or cross-border e-commerce platforms.
Global Reach: Equip SMEs with technology to compete internationally, from cloud based accounting systems to AI-driven market analytics.
Empowering SMEs in Sustainability, Resilience and Growth
Policy Reforms: Promoting policies that facilitate working capital, trade finance, and digital payments while supporting financial technologies that simplify SME operations.
Public-Private Partnerships: Encouraging collaboration between governments, financial institutions, and private sector stakeholders to mobilize resources, mitigate risks, and scale impactful solutions
Synopsis:
Small and medium enterprises across Africa face critical financial infrastructure challenges that limit their growth potential. Cross-border transactions are expensive and slow, often taking days to settle while incurring huge fees. Local currency volatility erodes business capital and makes international trade planning nearly impossible. Traditional banking systems exclude many SMEs from accessing global markets and capital, creating barriers to expansion and competitiveness in the digital economy.
The session charted a bold vision for the future of SME finance, showcasing how stablecoins could become the cornerstone of financial innovation and inclusion across Africa. It explored forward-looking use cases - from seamless cross-border payments and real-time settlements to access to global capital and protection against local currency volatility—that positioned stablecoins as essential tools for SME growth and competitiveness in an increasingly connected marketplace.
Speakers:
Ashley Scott, Senior Director, Global Policy and Government Affairs, Circle
Lyle Horsley, Head of Fintech, South African Reserve Bank
Rob Downes, Head of Digital Assets, CIB Africa, Absa Group
Shelley Anderson, Program Director, Alliance for Innovative Regulation
Moderator:
Yaliwe Mlambo, President, Stellar Southern Africa