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Entrepreneur's Corner

Digital Payments In Africa Have Grown By 37%

BY Soko Directory Team · December 3, 2024 02:12 pm

KEY POINTS

"AfricaNenda and its partners are rallying for a collective effort to expand IPS and deliver inclusive solutions for every citizen, especially those in rural and underserved regions. Our ultimate goal is universal financial inclusion by 2030."

Africa is undergoing a financial renaissance, with digital payment systems spearheading a transformative shift across the continent.

Over the past five years, transaction volumes have soared by an impressive 37%, signaling not just growth but a redefinition of the continent’s financial landscape. This evolution was underscored at the launch of the 2024 SIIPS Report in Accra on Wednesday, November 20, 2024, a momentous occasion that spotlighted both progress and challenges in the journey toward universal financial inclusion.

The report unveils a burgeoning ecosystem of 31 operational Instant Payment Systems (IPS) across 26 countries, with an additional 27 nations preparing to roll out similar frameworks. This expansive growth cements IPS as the cornerstone of Africa’s financial ecosystem, offering near-instant transactions that have redefined convenience for millions. However, this progress is only part of the story.

Speaking at the event, Dr. Robert Ochola, CEO of AfricaNenda, emphasized the urgent need to push the boundaries further. “AfricaNenda and its partners are rallying for a collective effort to expand IPS and deliver inclusive solutions for every citizen, especially those in rural and underserved regions. Our ultimate goal is universal financial inclusion by 2030.”

Despite these advances, the report does not shy away from highlighting the obstacles that remain. Women and other vulnerable groups often face significant barriers, including fraud concerns and limited recourse mechanisms. These challenges create a sense of distrust, particularly among women in rural areas who remain cautious about engaging with digital payment platforms.

The World Bank’s Global Director of Finance, Jean Pesme, shed light on the transformative potential of IPS, describing them as a pathway to greater financial equality and resilience. “Access to safe, low-cost, and efficient digital payments has the power to transform lives, close the gender finance gap, and build resilience. While progress is remarkable, there is a pressing need for more robust systems and increased collaboration with fintech and private sector players,” Pesme stated.

Amid growing concerns over security and network reliability, Sabine Mensah, Deputy CEO of the AfricaNenda Foundation, called for enhanced data transparency and stronger fraud prevention measures. Speaking on the sidelines of the launch, she noted, “Regulators must step up to ensure that digital payment systems inspire trust, particularly for vulnerable populations. Privacy concerns and effective fraud recourse mechanisms should no longer be negotiable—they are fundamental.”

While IPS transaction values have climbed by 39%, it is clear that this growth must be matched with structural reforms. The report advocates for greater fintech innovation, strengthened regulatory frameworks, and a unified push from both the public and private sectors to ensure that no one is left behind.

As Africa races toward its 2030 financial inclusion goals, the 2024 SIIPS Report serves as a clarion call. It underscores that while digital payments have rewritten the rules of engagement, the journey is far from over. Bridging the trust gap, empowering women, and reaching underserved areas will require unwavering commitment and collaborative action.

Africa’s financial revolution is here—its success will depend on how inclusively it writes its next chapter.

Read Also: 49 Billion Transactions Were Processed Across The African Continent – SIIPS Report 2024

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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