Africa’s financial horizon: Unlocking inclusive growth

The digital transformation in Africa is rapidly evolving, particularly in the realm of instant payment systems, which are poised to fundamentally reshape the continent's economic landscape. Sabine Mensah, Deputy CEO at AfricaNenda, highlighted the current state of instant payments in Africa during an interview with CNBC Africa, emphasizing the remarkable progress and potential for inclusive growth. Mensah revealed that Africa currently boasts 31 active instant payment systems, including domestic and regional platforms, processing a staggering 49 billion transactions in 2023—a 47% increase from the previous year. This surge in transaction volumes underscores the dynamic nature of Africa's instant payment ecosystem, with a notable focus on enhancing interoperability between mobile money and traditional banking systems. Moreover, Mensah expressed optimism regarding the growing inclusivity of instant payment systems, citing the expansion of inclusive functionalities across 13 countries as a significant milestone. The commitment to low cost, low value, and low volume transactions, coupled with robust consumer protection mechanisms, is propelling the continent towards a more inclusive financial landscape. As the momentum continues to build, the key theme of leveraging instant payment systems for sustainable and inclusive growth emerges as a pivotal focus area. With a keen eye on promoting inclusivity, Mensah outlined three essential components driving the development of instant payment systems in Africa. Firstly, embracing inclusive functionalities that cater to diverse transaction needs, regardless of value or volume. Secondly, establishing robust governance structures that foster equal participation among all financial service providers and regulators. Finally, prioritizing consumer-centric design features that ensure accessibility, protection, and affordability for all users. Looking ahead, Mensah identified several trends and opportunities that could further accelerate the inclusivity of instant payment systems on the continent. She emphasized the significance of advancing interoperability initiatives, expanding use cases, enhancing security measures, and nurturing collaborative partnerships between public and private stakeholders. By fostering an ecosystem-driven approach, Africa can harness the full potential of instant payment systems to drive financial inclusion and empower underserved communities. Mensah's optimistic outlook on the future of instant payments resonates with AfricaNenda's commitment to supporting governments and payment providers in their journey towards a more inclusive and efficient financial ecosystem. As Africa strides towards a digital-first economy, the transformative power of instant payment systems stands as a beacon of hope for driving economic prosperity and financial inclusion across the continent.