Nairobi:Africa is making significant strides towards a digitally connected economy, with instant payment systems promising faster transactions and broader market access. However, fragmented payment networks and high transaction costs continue to hinder millions from fully benefiting.
According to News Agency of Nigeria, these challenges were discussed during a recent workshop organized by the AfricaNenda Foundation in Nairobi, Kenya. The foundation aims to accelerate inclusive instant payment systems to ensure that people across Africa, especially underserved communities, can access and use digital financial services.
The workshop gathered journalists and communications officers from the African Union Commission to enhance reporting on inclusive instant payment systems and financial inclusion. Discussions focused on the accessibility, affordability, and reliability of payment systems for ordinary people and small businesses.
Sabine Mensah, Deputy CEO of AfricaNenda Foundation, raised a critical question about consumers’ ability to access information and conduct transactions easily and affordably. Data presented revealed that 75% of African adults own mobile phones, but only 58% have a bank or mobile money account, highlighting a gap in digital finance participation.
John Muthiora, Technical Payment Specialist at AfricaNenda, emphasized the need for multilateral payment systems that connect various financial institutions. Such systems reduce complexity and costs, making transactions cheaper and easier for consumers. However, connectivity alone is not sufficient; the systems must also accommodate users with basic mobile phones, especially in rural areas.
The workshop also evaluated AfricaNenda’s framework for assessing instant payment systems, categorizing them into basic, progressed, and mature levels. Nigeria’s NIBSS Instant Payment system was identified as the only mature-level system on the continent. Serge Ambadiang from AfricaNenda highlighted the need for systems to support a wide range of use cases and maintain sustainable cost-recovery models.
Cross-border payments remain a significant challenge, with businesses facing obstacles due to different currencies and regulations. A study suggested that $5 billion could be lost annually through currency conversion in cross-border payments. Efforts are underway to harmonize regulatory frameworks to facilitate seamless digital payments across African countries.
Participants also addressed consumer protection and fraud risks associated with instant payments. Sabine Mensah warned of the various scams in the digital payment ecosystem and stressed the importance of consumer education and real-time fraud monitoring.
The workshop aimed to improve journalists’ understanding of instant payment systems and encourage them to investigate whether these systems are effective for people in remote areas. Jude Fuhnwi, AfricaNenda’s Media Lead, emphasized the role of journalism in amplifying consumer experiences and influencing policy discussions.
Africans’ digital payment ambitions depend on accessible, affordable, and secure services. As regional trade integration deepens, interoperable payment systems will be crucial for seamless cross-border transactions. The goal is to ensure that instant payments deliver inclusive and lasting benefits for all.