The transformative power of digital payments across Africa took center stage with the launch of the SIIPS Report 2024 in Accra. Published in collaboration with AfricaNenda, the World Bank, and the United Nations Economic Commission for Africa (UNECA), the report shines a spotlight on the rapid growth and transformative potential of Instant Payment Systems (IPS) across the continent.
With 31 active IPS across 26 African countries and 27 additional systems in the pipeline, Africa is witnessing unprecedented adoption of digital payment solutions.
Over the past five years, transaction volumes and values processed through IPS have grown by 37% and 39%, respectively, driven by rising mobile phone usage, fintech innovations, and supportive regulations.
The report highlights that IPS is more than a technological innovation—it’s a lifeline for Africa’s underserved populations. IPS systems offer instant, low-cost, and reliable transaction solutions that promise to bridge the financial inclusion gap. However, achieving true inclusivity remains a challenge.
“While IPS systems have made remarkable progress, no system has fully achieved mature inclusivity,” the report states. Barriers such as security concerns, fraud risks, and network reliability disproportionately affect vulnerable groups, particularly women, who remain cautious about embracing digital payments.
Dr. Robert Ochola, CEO of AfricaNenda, emphasized the need for collective action:
“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.”
The SIIPS Report 2024 offers a nuanced analysis of the state of IPS in Africa, informed by diverse data sources:
- Survey Responses: Insights from IPS operators and central banks.
- Consumer Research: Findings from Algeria, Ethiopia, Guinea, Mauritius, and Uganda.
- Case Studies: In-depth analyses of IPS in Mauritius, South Africa, Tanzania, and Zimbabwe.
- Expert Interviews: Perspectives from stakeholders across the continent.
This comprehensive methodology underscores the immense potential of IPS while identifying critical areas for improvement, including the need for robust recourse mechanisms and innovative solutions tailored to gender-specific challenges.
Women face unique barriers in adopting digital payments, with many citing safety concerns as a major deterrent. Addressing this gender disparity is essential for achieving financial inclusivity. As Jean Pesme, Global Director of Finance at the World Bank, noted:
“Access to safe, low-cost, and efficient digital payments has the potential to transform lives, remove the gender gap in finance, and foster growth in the digital economy. More needs to be done through new use cases, fintech promotion, and private sector involvement.”
Through its Project FASTT, the World Bank is driving initiatives to help countries enhance IPS capabilities, fostering knowledge-sharing and innovation to meet evolving market demands.
The report aligns with broader continental frameworks, such as the African Continental Free Trade Area (AfCFTA) and the African Union’s Agenda 2063. Stephen Karingi, Director at UNECA’s Regional Integration and Trade Division, highlighted the strategic importance of IPS for Africa’s economic integration:
“ECA is committed to partnering with AfricaNenda and key stakeholders to build trusted, interoperable, and instant payment systems. This collaboration addresses the growing demand for seamless transactions, fostering continent-wide economic integration and financial inclusion.”
To propel IPS forward, the SIIPS Report 2024 identifies several key opportunities:
- Fintech Innovation: Licensing and regulation to foster creative payment solutions.
- Gender Equity: Addressing the barriers preventing women from accessing digital payments.
- Cross-Border Payments: Building a mesh of interconnected IPS systems to facilitate seamless transactions across African borders.
As countries develop the payment layer of their digital public infrastructure, the momentum for inclusive and interconnected IPS systems grows stronger.
AfricaNenda and its partners envision a continent where every citizen can make digital transactions seamlessly and affordably by 2030. This ambitious goal is underpinned by AfricaNenda’s commitment to providing public and private stakeholders with the expertise needed to scale IPS systems effectively.
“The SIIPS report is a valuable contribution, offering rigorous insights to guide progress toward achieving universal financial inclusion,” said Dr. Ochola.
- AfricaNenda Foundation: Focused on scaling up inclusive payment systems across Africa, AfricaNenda is supported by organizations like the Rockefeller Philanthropy Advisors and the Bill & Melinda Gates Foundation.
- UNECA: A regional arm of the UN committed to fostering economic and social development across its 54 member states.
- World Bank Group: Working globally to end extreme poverty and promote shared prosperity through financial and technical assistance.
Through continued innovation, collaboration, and investment, IPS systems are poised to revolutionize financial inclusion in Africa, empowering individuals and communities to thrive in the digital economy.