The State of Inclusive Instant Payment Systems in Africa Report 2024 has highlighted the impressive progress made in terms of transaction volume and value, yet emphasized the need for further advancements to enhance instant payment systems across the continent.
With 31 live Instant Payment Systems (IPS) in 26 countries and an additional 27 nations preparing to launch their own, the report paints a picture of an evolving financial landscape with vast potential to reach Africa’s underserved populations.
Over the past five years, the volume and value of transactions processed through IPS in Africa have grown by 37% and 39%, respectively, reflecting a broader shift towards digital payments. This growth is fueled by factors such as increased mobile phone penetration, innovations in fintech, and supportive regulatory frameworks.
Despite these advancements, no IPS has fully reached the level of mature inclusivity, meaning a system that can support a wide range of digital payment uses, accessible and affordable for all, with transparent mechanisms for consumer recourse.
Barriers still exist for women and other vulnerable groups in adopting digital payment methods, including concerns over security, fraud, and the reliability of networks. The report stresses that while progress has been made, achieving true financial inclusion remains a challenge.
Addressing gaps in recourse mechanisms to tackle fraud and privacy concerns is crucial, particularly for vulnerable groups like women, who continue to report feeling unsafe when using digital payment platforms.
Commissioned by the AfricaNenda Foundation in collaboration with the World Bank and the Economic Commission for Africa, the report was launched with the support of the Bank of Ghana and the Ghana Interbank Payment and Settlement System.
The report provides an in-depth analysis of IPS penetration in Africa and examines how instant payment systems are driving financial inclusion across the continent.
Dr. Robert Ochola, CEO of AfricaNenda, stated that while successes have been achieved, Africa must intensify efforts to overcome the obstacles that hinder the full potential of instant payments.
“AfricaNenda and its partners are calling for a collective push to expand IPS and deliver solutions that cater to every citizen, particularly those in rural and underserved areas.
Dr. Robert Ochola, CEO of AfricaNenda, emphasized that achieving universal financial inclusion by 2030 is within reach, especially if the 27 planned IPS initiatives are successfully rolled out.
He highlighted the need for Africa to leverage its resources to drive development and called for a supportive regulatory environment to foster the growth of instant payment systems across the continent.
Dr. Ochola shared that AfricaNenda’s mission is to advance and expand instant payment systems in Africa, aiming to fuel economic growth and prosperity throughout the region.
In a speech delivered on his behalf by Kwame Oppong, Director of Fintech and Innovation at the Bank of Ghana, Governor Dr. Ernest Addison lauded the report as comprehensive, underscoring the nation’s commitment to ensuring the financial health and well-being of its citizens.
“As we launch the SIIPS, we must focus on the transformative power of instant payment,” Dr Addison stated, adding that instant payment must be accessible, secure and frictionless.
Mehnaz Safavian, Practice Manager for Financial and Digital Inclusion at the World Bank, stated that Africa could boost financial inclusion through instant payments, noting that digital payments have the potential to reduce payment and remittance costs by 40%.
Ms. Safavian also stressed the importance of addressing emerging risks in inclusive payment systems, with data security being a key priority.
Stephen Karingi, the UNECA Representative, emphasized that instant payments are vital for fostering African integration. He advocated for interoperability in digital payments to enhance their adoption and penetration across the continent.
Mr. Karingi further highlighted that instant payment systems would deepen Africa’s understanding of the digital public infrastructure ecosystem, ultimately helping to shape the continent’s digital future.
“ECA is committed to partnering with AfricaNenda and key stakeholders to support Member States in building trusted, interoperable, and instant payment systems. This collaboration addresses the growing demand for seamless transaction systems, fostering continent-wide economic integration and financial inclusion, and significantly advancing frameworks like the African Continental Free Trade Area (AfCFTA) while aligning with the African Union’s Agenda 2063 for an integrated Africa.
The SIIPs report is a valuable contribution, offering the latest rigorous insights that guide progress toward these ambitious goals.” – Stephen Karingi – Director at the Regional Integration and Trade Division of the Economic Commission for Africa.