Chief Executive Officer (CEO) of MobileMoney Fintech Limited (MMFL), Shaibu Haruna, has cautioned that expanding financial inclusion across Africa without strong consumer safeguards could expose millions of users to debt distress and undermine confidence in the continent’s fast-growing digital financial ecosystem.

He warned that while digital lending has dramatically improved access to credit, particularly for individuals and small businesses, the absence of adequate protection frameworks risks turning innovation into vulnerability.

Shaibu delivered the caution in a keynote address on responsible digital lending and consumer protection at the opening of the 3i Africa Summit in Accra, where policymakers, regulators, fintech leaders and investors gathered to chart the future of Africa’s digital economy.

Inclusion without protection is a trap

He described the speed at which digital credit is disbursed across African markets as unprecedented, noting that thousands of loans can now be approved within seconds across cities such as Accra, Kampala and Dar es Salaam.

However, he questioned whether borrowers fully understand the terms attached to such loans.

“In the time it takes to complete a sentence, a digital lender in Accra, Kampala or Dar es Salaam can approve thousands of loans,” he said.

“But we must ask ourselves—did the borrower understand the interest rates, the penalties, and the terms? If not, then we must pause. Because without protection, there is no inclusion, and inclusion without protection is a trap.”

Rising risks of over-indebtedness

Shaibu acknowledged that digital lending has played a transformative role in bringing millions into the formal financial system, but warned that rapid expansion without controls could lead to over-borrowing and debt cycles.

“Credit today moves at the speed of light, powered by data and technology,” he noted.

“But as access expands, a critical question confronts all of us: are we building systems that are truly responsible and sustainable?”

He cautioned that unchecked lending practices could mirror challenges seen in other markets, where rapid growth in digital credit resulted in widespread repayment difficulties and consumer harm.

Four pillars of responsible digital lending

Outlining what he described as urgent priorities for the sector, Shaibu called for a stronger focus on transparency, responsible usage, data fairness and accountability.

He stressed that customers must clearly understand the full cost of borrowing, including interest rates, fees and penalties, adding that transparency should not be optional but embedded in product design from the outset.

“Transparency must be embedded in the design of every product,” he said.

He also raised concerns about multiple borrowing, warning that some users accumulate loans across different platforms without adequate assessment of repayment capacity.

Call for smarter regulation

On regulation, the MMFL CEO advocated a shift from rigid rules to more adaptive supervisory systems that reflect the realities of digital finance.

“The answer is not just more regulation, but smarter regulation,” he said.

“We need risk-based frameworks, real-time data sharing, and outcome-driven supervision that focuses on customer impact.”

He emphasised that consumer protection should not be left solely to regulators, but should be treated as a shared responsibility across the entire financial ecosystem, including service providers and technology platforms.

“If we fail to act, we risk repeating the experiences of other markets where rapid digital lending growth led to unintended consequences,” he warned.

Trust at the centre of digital finance

Concluding his address, Shaibu underscored that trust remains the foundation of sustainable digital finance growth.

“Trust is the currency of digital finance. Without it, the entire ecosystem is at risk,” he said.

3i Africa Summit

The 3i Africa Summit, which opened on May 6, 2026, at the Destiny Arena in Accra, brought together more than 600 delegates from across Africa and beyond.

The three-day event focused on innovation, investment and impact in Africa’s digital financial landscape, with discussions centred on fintech growth, regulation, interoperability and financial inclusion.

The summit concluded on Friday, May 8, with a renewed call for collaboration between regulators, innovators and investors to build a safer and more inclusive digital financial future for the continent.