Nairobi:Africa’s push towards a digitally connected economy is gaining traction with the development of instant payment systems. These systems promise faster transactions, broader market access, and more seamless cross-border trade. However, fragmented payment networks, unequal access to financial services, high transaction costs, and increasing fraud risks still prevent millions from fully benefiting from these advancements.
According to News Agency of Nigeria, a recent three-day workshop organized by the AfricaNenda Foundation in Nairobi, Kenya, brought together 18 journalists and three communications officers from the African Union Commission. The workshop aimed to strengthen reporting on inclusive instant payment systems and financial inclusion.
Discussions at the workshop focused on the accessibility, affordability, and reliability of payment systems for ordinary people, small businesses, and underserved communities. A key question posed by Sabine Mensah, Deputy CEO of the AfricaNenda Foundation, was whether consumers can conduct transactions easily, affordably, and instantly.
Data presented highlighted that 75% of African adults own mobile phones, and 58% have a bank or mobile money account. Yet, about 49% of the adult population does not use mobile payments, indicating a gap between access to technology and participation in digital finance.
John Muthiora, Technical Payment Specialist at AfricaNenda, emphasized the need for inclusive payment systems to connect different financial institutions rather than operate in isolated networks. He noted that multilateral systems could reduce the complexity and cost of transactions, making them more accessible for consumers.
The workshop also assessed AfricaNenda’s framework for evaluating instant payment systems, categorizing them into basic, progressed, and mature levels. Nigeria’s NIBSS Instant Payment system was recognized as the only mature-level system in Africa.
Dr. Patrick Olomo from the African Union Commission discussed efforts towards regulatory harmonization to facilitate digital payments across Africa. A feasibility study found that a harmonized regulatory framework is achievable, but it requires binding rules and interoperable systems.
The workshop participants also examined the risks associated with instant payments, particularly fraud. Sabine Mensah highlighted the need for recipient verification, real-time fraud monitoring, and consumer education to protect users.
Jude Fuhnwi, Media Lead at AfricaNenda, urged journalists to investigate whether payment systems effectively serve people in rural areas. The workshop aimed to enhance journalists’ understanding and reporting on instant payment systems, encouraging them to focus on consumers’ experiences.
Africa’s digital payment ambitions rely on accessible, affordable, and reliable systems. As regional trade integration deepens, these systems will be crucial for seamless transactions across borders, ensuring they provide tangible benefits for all.