The road to a pan-African digital payments network

Sub-Saharan Africa’s payments ecosystem is evolving rapidly. Across the continent, 34 instant payment systems are already operational, with more in development. In February, South Sudan announced plans to launch its own Instant Payments System - an important milestone for one of the world’s most underdeveloped countries and a testament to the rapid pace of financial innovation across Africa.

As transactions across Africa and beyond become faster than ever, there is a unique opportunity to build an interconnected digital payments landscape that fosters economic growth and expands financial inclusion. However, achieving this vision will require collaboration, interoperability, and common standards to ensure seamless cross-border transactions. In this context, globally inclusive networks play an essential role in enabling connectivity and financial stability.

Unlocking the potential of an African digital single market

The widespread adoption of instant payment systems marks a transformative moment for Africa’s financial sector. Yet, significant challenges remain in ensuring that these systems are accessible to all, including millions of unbanked individuals. Moreover, linking them across borders is essential to facilitating seamless intra-African transactions and preparing the region for integration into the global digital economy.

As more countries develop their own instant payment systems, the key challenge lies in creating a continent-wide, interoperable network. A truly integrated payments ecosystem would empower businesses, individuals, and governments to transact efficiently across borders, reducing costs and boosting economic activity. It would also provide the foundation for a Digital Public Infrastructure, positioning Africa as a global leader in payment innovation.

A seamless pan-African payments system is not just an ambition - it is a strategic necessity. The African Continental Free Trade Area (AfCFTA) aims to increase intra-African trade from 18% to 50% by 2030. Connecting instant payment systems across borders would accelerate this progress, making transactions faster, cheaper, and more secure. This, in turn, would unlock new economic opportunities for businesses of all sizes, driving financial inclusion and economic resilience.

Beyond Africa, a harmonised network of instant payment systems aligns with global initiatives such as the G20’s agenda for improving cross-border payments. By establishing itself as a leader in payment interoperability, Africa could set new global standards for efficiency, transparency, and accessibility.

Bringing traditional and non-traditional financial services providers together 

One of Africa’s greatest strengths in achieving financial inclusion has been the widespread adoption of mobile money services like M-Pesa and MoMo, which enable unbanked populations to send and receive payments across borders. These non-bank financial service providers have played a crucial role in bringing millions into the formal financial system, particularly in regions where traditional banking infrastructure is limited. To maximise the impact of instant payments, it is essential to integrate mobile money platforms and other financial service providers into these networks.

By ensuring interoperability between instant payment systems, mobile money platforms, and banks, Africa can further expand financial access, allowing more individuals and businesses to benefit from the digital economy. This approach would not only drive financial inclusion but also enhance economic development by streamlining transactions for micro, small, and medium-sized enterprises, which form the backbone of many African economies.

The importance of interoperability 

Achieving interoperability across Africa’s instant payments landscape requires a secure, globally recognised infrastructure. With both mobile money providers and banks playing key roles in the payments market, it is crucial that these systems can connect seamlessly with one another and with instant payment networks.

An interoperable payments landscape can help mitigate the risk of fragmentation – a major barrier to creating an inclusive digital economy. An Economist impact report, supported by Swift, shows that fragmentation adds friction to international trade and hinders economic growth on a global scale, with projected global GDP losses ranging from -1.2% by 2030 in the best-case scenario, to almost -6%, or the equivalent of $6.5 trillion, in the worst case. By facilitating standardised communication between financial institutions, instant payment systems can interoperate with reliability, security, and efficiency, reinforcing trust in Africa’s digital payments ecosystem.

The road ahead 

The rise of instant payment systems in Sub-Saharan Africa is a game-changer for the continent’s financial landscape. By connecting these systems, Africa can drive economic growth, enhance financial inclusion, and establish itself as a global leader in cross-border payments. The journey ahead requires collaboration, investment, and a commitment to common standards, but the potential rewards are immense.

As Africa moves towards a fully interoperable digital payments ecosystem, the region can not only achieve its trade and financial inclusion goals but also to set a global example for seamless, efficient, and inclusive payments. Now is the time for action - by working together, Africa can transform its payments future for generations to come.