E-Financial
MasterCard Says Nigeria, 3 Others on Digital Evolution Threshold
A new Digital Evolution Index from MasterCard shows that South Africa, Egypt, Kenya and Nigeria are quickly moving towards digital evolution.
However, South Africa’s digital economy is the most developed in Africa, and one of the fastest growing in the world, according to the new Digital Evolution Index developed by MasterCard and The Fletcher School at Tufts University that tracks a country’s movement toward digital evolution, gauges progress and assesses challenges in 50 countries comprising the Index.
South Africa ranks 33 out of the countries measured by the index in digital readiness, which is defined by the markets’ ability to support and encourage digital commerce and payments. In Africa, it ranks ahead of Egypt (48), Kenya (49), and Nigeria (50).
South Africa also emerged as the fourth fastest growing digital economy behind China, Malaysia and Thailand.
“South Africa’s speed of growth can be attributed to the rapidly increasing proportion of the population with Internet access, an 86 percent adult mobile phone penetration rate, and a highly developed telecommunications network. However, what is significant is that all four of the African countries measured share a common trait of moving at a high rate of speed toward digital evolution, demonstrating huge growth potential for e-commerce,” said Ted Iacobuzio, Vice president, Global Insights, MasterCard.
The Index analyses four key underlying drivers and barriers that govern a country’s evolution into a digital economy, Demand (consumer demographics, income and internet access); Supply (technology and infrastructure); Institutional Environment (governmental policy), and Innovation (environment for creating startups and the overall competitive landscape).
Each country is given an overall digital readiness score between 0 (low digital readiness) and 100 (digitally saturated), which is derived from an average score of these four interdependent drivers.
The index also provides an indication, by country, where the next billion Internet users will come from globally.
According to McKinsey, Africa’s Internet penetration stood at 16 percent (167 million people) in 2013, and is forecasted to reach 50 percent (600 million people) by 2025, indicating the online consumer market will quadruple over this time.
“There are currently 2.9 billion Internet users in the world, a feat that took over 20 years to achieve. The next billion users will enter the market much faster than this. A significant proportion of these will come from Africa, where the four countries studied – Egypt, Kenya, South Africa and Nigeria – all represent exceptional growth potential coupled with short-term opportunity,” said Iacobuzio.
The study analysed each market’s evolution from 2008 to 2013 and grouped each country into one of four trajectory zones:
‘Stand Out’ countries have historically moved at a high rate of digital readiness and maintain high levels of digital transactions;
‘Break Out’ countries are typically developing countries that currently have low readiness scores, but are rapidly evolving;
‘Watch Out’ countries face various challenges, but have significant opportunities for investment; and
‘Stall Out’ countries, while possessing a history of strong growth, are highly evolved and offer little potential for change.
The Index positions South Africa as a ‘Break Out’ country with an overall score of 30 out of 100 in 2013. Its score jumped from 24 to 34 between 2008 and 2012, a substantial increase compared to other countries.
While infrastructure investments in South Africa will drive e-commerce to achieve a likely 30 percent growth rate in 2014, the Index indicates that demand for e-commerce currently lags the global average.
“South Africa may have a relatively average Index score overall, but its digital landscape is evolving rapidly. If this evolution continues at its current rate, South Africa has the potential to grow into a strong digital economy. It is a prime candidate for becoming a ‘Stand Out’ nation in the future,” he says.
The three other African countries ranked in the index are classified as “Watch Out” countries. Egypt scored 17.3, Kenya scored 16.9 and Nigeria scored 13.7 out of 100. These countries are just starting out on their journeys towards digital readiness, each facing different challenges.
“Encouragingly, Egypt, Kenya and Nigeria fared well in their speed of digital growth. This points to their potential to develop into evolved digital economies that further encourage digital payments, and enable future e-commerce opportunities,” he said.
Key African Insights:
Egypt’s Innovation score of 29.5 and its Demand and Supply drivers both above 15 helped place it second in the African rankings.
According to the Index, Egypt has the potential to be one of the top 10 fastest evolving countries globally in the next five years.
Mobile payments are in place for an impressive run due to the the first ever interoperable Arabic mobile money implementation in Egypt. While the e-commerce penetration rate among Egyptians is still low at 3.4 percent, Egypt’s online purchases are expected to triple by 2016, according to Euromonitor.
Kenya’s Innovation score of 32.9 was its highest driver score followed by its Institution score of 14.
This is due to a combination of factors including the country’s mobile payment capabilities, led by the M-Pesa platform, which shows an evolved mobile market where 25 percent of Kenya’s GDP travels through M-Pesa.
In 2013, Kenya’s mobile penetration rate was 72.5 percent growing by 5.6 percent to 32.3 million subscribers during the second quarter of 2014. Kenya faces challenges with its Supply and Demand drivers, which if focussed on over time will lead to an improved overall Index score.
Nigeria’s Innovation and Institution drivers fared relatively well largely owing to the Central Bank of Nigeria’s Cashless Policy that is expected to drive growth in electronic payments and e-commerce, the country’s increasingly urban population that will have better access to the Internet over the coming years, and the fact that Nigeria has 94 percent mobile penetration.
Its Supply and Demand drivers have much potential for improvement, with scores of 6.8 and 7.3 respectively, pointing to a need for improved technology and infrastructure.
However, Nigeria showed the greatest potential for digital growth.
Globally, Singapore, Sweden and Hong Kong are the top three countries on the Index with the most active and advanced digital economies with scores of 56, 55 and 53.5 respectively.
The United Kingdom and Switzerland round out the top five, while the United States ranks sixth among the 50 countries measured.
The Digital Evolution Index is an output of the study conducted by researchers at The Fletcher School with the support of MasterCard.
Analyzing datasets from public sources, such as The World Bank, and private sources such as EMPEA and Dow Jones VentureSource, the research team created an analytical framework for recognizing patterns and making sense of the global digital landscape, discerning country trends and evaluating their relative strengths and weaknesses.
The methodology for the Digital Evolution Index measures the current ability of countries to deliver on consumer demand and business supply capabilities, in combination with governmental policy and climate for innovation – four drivers defining digital readiness that were identified in the research hypothesis.
In addition to the current state, the study measured each country’s trajectory across the four drivers from 2008 through 2013.
The index then layers a quadrant matrix to visualize the trajectory of a particular country.
Central Bank of Nigeria (CBN) has said that any authorised dealer bank the processes foreign exchange (forex) transactions without proper documentation will be fined N100 million.
In addition, the bank will pay N10 million for each transaction involved.
The sanctions are contained in the fourth edition of the Foreign Exchange Manual, which serves as a guide for participants in Nigeria’s forex market.
According to the CBN, the updated manual aims to improve compliance, increase transparency, and strengthen confidence in the foreign exchange system.
Banks are now required to obtain, verify, and keep all necessary documents before releasing foreign currency to customers.
Similar documentation requirements apply to forward and swap transactions, where proof of the underlying trade or obligation must be provided before settlement.
For import transactions, importers must continue to provide documents such as Form M, invoices, certificates of origin, packing lists, and shipping documents.
They must also submit Exchange Control Documents within 90 days after negotiating shipping documents through overseas correspondent banks.
The CBN warned that failure to meet documentation requirements will attract escalating sanctions.
A first violation will result in a 90-day suspension from forex transactions, a second violation will attract a 180-day suspension, and a third offence will lead to a one-year suspension.
A fourth violation could result in a complete ban from participating in forex transactions.
Banks that fail to report cases of default to the CBN will also face sanctions.
The apex bank further tightened reporting requirements. Institutions that submit required daily or monthly returns late will be fined N500,000, while those that fail to submit returns at all will pay a minimum of N5 million, plus an additional N500,000 daily until compliance is achieved.Afternoon Paper Subscription
The revised manual also strengthens oversight of banks’ foreign currency exposure.
Financial institutions that exceed approved Net Open Position limits will receive a warning for the first offence, a 10-working-day suspension from the Nigerian Foreign Exchange Market for the second offence, and a 90-day suspension for the third violation.
The CBN also imposed sanctions on unauthorised reallocation of foreign exchange funds. Any bank found engaging in such practices will be fined N10 million per transaction and may face additional disciplinary action under the Bankers’ Committee ethics framework.
According to the CBN, the new measures are aimed at promoting transparency, strengthening market discipline, reducing abuses, and improving investor confidence in Nigeria’s foreign exchange market.
E-Financial
BOI Wins Dual Honours @ EMEA Finance Awards for Sustainability and Social Impact Leadership
The Bank of Industry (BOI) has been recognised with two prestigious awards at the recently concluded EMEA Finance Achievement Awards, reinforcing its position as a leading development finance institution driving inclusive and sustainable economic growth across Africa.
The Bank received the Best Sustainability Deal in Africa Award for its financing intervention under the Nigeria Distributed Access through Renewable Energy Scale-up (DARES) Project and the Best Social Development Deal in Africa Award for its flagship Guaranteed Loans for Women (GLOW) programme.
The award-winning DARES initiative is being implemented by BOI in collaboration with the Rural Electrification Agency (REA) and supported by the World Bank through a $750 million International Development Association (IDA) credit facility. The programme is designed to expand electricity access across underserved and unserved communities through the deployment of solar mini-grids.
The initiative forms part of BOI’s broader Power and Utilities portfolio, through which the Bank disbursed ₦27 billion to eight businesses in 2025. According to BOI’s 2025 Annual Development Impact Report, all supported projects demonstrated 100 per cent financial additionality, indicating that they would not have proceeded without BOI’s intervention.
The Bank’s Power and Utilities portfolio also recorded the highest Development Impact Framework score across all sectors financed by BOI, underscoring the transformational impact of its investments in sustainable energy infrastructure.
Similarly, the GLOW programme was recognised for advancing financial inclusion and economic empowerment for women-owned and women-led businesses across Nigeria.
Designed to address longstanding barriers faced by female entrepreneurs, including limited access to affordable finance, collateral constraints, and capacity gaps, GLOW provides tailored financing, business support services, and capacity-building opportunities to women-led enterprises across multiple sectors of the economy.
Beyond financing, GLOW provides training, mentorship, market access support, and opportunities for women-owned businesses to strengthen their competitiveness and expand into regional and international markets, including opportunities presented by the African Continental Free Trade Area (AfCFTA).
Speaking on the awards, Dr. Olasupo Olusi, MD/CEO BOI, described the recognition as an affirmation of BOI’s commitment to financing initiatives that create lasting developmental impact.
“These awards reflect the Bank of Industry’s deliberate focus on supporting projects and programmes that deliver measurable economic, social, and environmental outcomes for Nigerians. Whether it is bringing reliable electricity to underserved communities through renewable energy solutions or empowering women entrepreneurs by providing access to affordable finance and growth opportunities, our goal remains the same: to build a more inclusive, resilient, and sustainable economy. We are honoured by this international recognition and remain committed to deepening our impact across sectors that matter most to national development.”
The dual recognition further underscores BOI’s growing reputation as a catalyst for sustainable development and inclusive industrialisation, leveraging innovative financing solutions to address critical development challenges while unlocking opportunities for businesses and communities across Nigeria.
As Nigeria’s foremost development finance institution, BOI continues to play a pivotal role in advancing the Federal Government’s economic transformation agenda through strategic investments that stimulate enterprise growth, create jobs, improve livelihoods, and strengthen the country’s long-term economic competitiveness.
The International Finance Corporation, Nigerian Exchange Group, and the Lagos Chamber of Commerce and Industry have unveiled the Nigeria Gender Country Programme at a high-level virtual CEO Roundtable convened to advance private sector action on gender equality and inclusive economic growth.
The session brought together chief executives and senior business leaders from NGX-listed companies, IFC client organisations, and LCCI member companies to introduce the programme’s strategic framework, align stakeholders around a shared agenda, and mobilise support ahead of its formal launch.
The NGCP builds on the momentum of Nigeria2Equal and other initiatives that have advanced workplace inclusion, women’s leadership, entrepreneurship, and sustainable finance across Nigeria’s private sector. Designed as a more integrated and collaborative platform, the programme seeks to scale impact through coordinated action among development institutions, business leaders, regulators, and the organised private sector.
Anchored on three strategic priorities, the programme aims to increase women’s representation in leadership, improve access to quality employment, and expand access to productive assets, including finance, technology, and markets, for women and women-led businesses.
Delivering the keynote address, the Director-General of the Securities and Exchange Commission, Emomotimi Agama, underscored the private sector’s critical role in accelerating gender-inclusive growth.
“Gender inclusion is fundamentally an economic growth imperative. Closing gender gaps can unlock billions of dollars in value for Nigeria while strengthening business performance and national competitiveness. We must therefore move beyond viewing inclusion as a corporate social responsibility initiative or compliance exercise and instead recognise it as a strategic driver of productivity, innovation, and sustainable economic growth,” he said.
Commenting on the initiative, Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, described the NGCP as a strategic platform for scaling women’s economic participation through stronger collaboration among the private sector, development institutions, and market stakeholders.
“The Nigeria Gender Country Programme presents a significant opportunity to deepen impact and accelerate progress across corporate Nigeria. By expanding women’s access to leadership opportunities, quality employment, finance, technology, and markets, we can unlock substantial economic value while building a more competitive, inclusive, and resilient private sector.
“At NGX Group, we believe the capital market has a critical role to play in advancing these outcomes through stronger governance, transparency, and stakeholder engagement,” he said.
Also speaking at the session, IFC Head of Office in Lagos, Christian Mulamula, highlighted the strong business case for gender inclusion.
“Closing the gender gap is one of the most significant opportunities to strengthen competitiveness and productivity. Across Africa, gender inequality is estimated to cost up to $2.5tn.
“Through the Nigeria Gender Country Program, IFC is working with the private sector to expand women’s leadership, improve access to better jobs, and increase opportunities for women-led businesses. Building on Nigeria2Equal, this initiative focuses on practical, measurable solutions that help businesses grow while advancing inclusive growth,” he said.
In her remarks, Director-General of LCCI, Chinyere Almona, noted that the programme’s success would depend on leadership accountability and sustained commitment from business leaders, particularly in embedding gender inclusion into organisational strategy and execution.
The partners are expected to formally launch the Nigeria Gender Country Programme at a physical event scheduled for 9 July 2026, where stakeholders will further advance implementation of the programme’s strategic priorities.
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