Digital payment systems in Africa have grown by 37% in transaction volume over the past five years, reflecting a major shift in the continent’s financial ecosystem.
This is according to the 2024 SIIPS Report, launched in Accra on Wednesday November 20, 2024.
The report also reveals that there are 31 operational Instant Payment Systems (IPS) across 26 countries, with 27 more nations preparing to roll out similar systems.
Despite this progress, the report highlights persistent challenges in achieving financial inclusion, particularly for women and other vulnerable groups, who face barriers such as fraud concerns and limited recourse mechanisms.
Commenting on the report, the Chief Executive Officer of AfricaNenda Dr. Robert Ochola said that: “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. The goal is to ensure universal financial inclusion by 2030.”
While IPS transaction values have risen by 39%, the report emphasizes the need for more robust systems to address security and network reliability. Recourse mechanisms to address fraud and privacy concerns are critical, especially for women, who often feel unsafe using digital payment platforms.
Jean Pesme, Global Director of Finance at the World Bank, reiterated IPS’s transformative potential.
“Access to safe, low-cost, and efficient digital payments can transform lives, close the gender finance gap, and foster resilience. While progress is remarkable, more needs to be done through fintech promotion and private sector involvement,” he said.
Speaking on the sidelines on the launch, Deputy Chief Executive Officer of AfricaNenda Foundation, Sabine Mensah also impressed on regulators within the financial space to enhance data transparency.
The report calls for accelerated innovation in fintech licensing, universal IPS adoption, and cross-border payment systems. These measures aim to create a more inclusive and interconnected digital payment infrastructure, driving Africa closer to universal financial inclusion.
