The 2024 State of Inclusive Instant Payment Systems in Africa (SIIPS) report reveals significant progress in instant payment systems (IPS) across Africa. With 31 live systems in 26 countries and 27 more in development, IPS is rapidly transforming the continent’s financial ecosystem, particularly for underserved communities. However, the report calls for action to overcome persistent barriers to financial inclusivity.
Progress in Instant Payment Systems
Over the past five years, Africa has seen a 37% increase in the volume and a 39% increase in the value of transactions through IPS. This growth is driven by rising mobile phone penetration, fintech innovations, and supportive regulatory frameworks.
Despite these gains, the report notes that no IPS in Africa has achieved full inclusivity, which involves universal accessibility, affordability, and robust recourse mechanisms for addressing fraud and privacy concerns. Vulnerable groups, particularly women, still face challenges in adopting digital payments due to security concerns, fraud, and network reliability.
Barriers to Financial Inclusivity
The report highlights gaps in the current IPS landscape:
- Lack of Inclusivity: Many systems fail to cater to vulnerable groups and rural communities.
- Fraud and Security Concerns: Insufficient mechanisms to address fraud and ensure data security hinder trust in digital payments.
- Interoperability Issues: Systems must work seamlessly across borders to promote adoption.
Women and rural communities are disproportionately affected, with many reporting feeling unsafe using digital payment platforms. Addressing these concerns is crucial to achieving universal financial inclusion.
A Vision for Universal Financial Inclusion by 2030
AfricaNenda’s CEO, Dr. Robert Ochola, emphasized the need for a collective push to expand IPS access. He urged stakeholders to address regulatory and infrastructural barriers to ensure no citizen is left behind.
“AfricaNenda and its partners aim to deliver solutions for every citizen, particularly in underserved areas, to achieve universal financial inclusion by 2030,” said Dr. Ochola.
The report also highlights the potential of IPS to drive economic development, reduce remittance costs by 40%, and foster continent-wide financial integration in alignment with the African Union’s Agenda 2063.
Stakeholder Commitments to Progress
- Bank of Ghana: Governor Dr. Ernest Addison stressed the transformative power of IPS, urging a focus on accessibility, security, and frictionless transactions.
- World Bank: Practice Manager Mehnaz Safavian emphasized the need to prioritize data security and reduce payment costs.
- UNECA: Representative Stephen Karingi highlighted the importance of interoperability in promoting digital adoption and enhancing African integration.
Shaping Africa’s Digital Future
The SIIPS report underscores the importance of collaboration among stakeholders to build trusted, interoperable IPS that align with frameworks like the African Continental Free Trade Area (AfCFTA). By addressing barriers, IPS can enrich Africa’s digital public infrastructure and advance the continent toward financial inclusion and economic prosperity.
