Governments and Regulators Must Accelerate Efforts to Build Robust Inter-country Payments Systems 

The success of efforts to deepen intra-continental trade, including the landmark African Continental Free Trade Area (AfCFTA), depends in large part on the existence of cross-border payments systems. However, despite the success of mobile money on the continent, cross-border payments still add unnecessary costs and delays to businesses and individuals, industry leaders claim. During the Africa Prosperity Dialogues in Aburi, Ghana, panellists called on governments and regulators to accelerate efforts to build robust inter-country payments systems to support intra-continental trade. Ernest Addison, governor of the Bank of Ghana, said that expanding mobile money access, “could empower the underserved populations with essential financial tools to help unlock opportunities for savings, loans, and secure transactions, as well as promote economic stability and growth.” Quoting McKinsey, Addison noted that Africa’s e-payments industry generated approximately $24bn in revenues in 2020, even though it accounted for a mere fraction of all payments. This, he said, shows that “e-payments have the potential of being a major growth pole for Africa.” Cross border payments, however, continue to be hampered by legacy challenges, including inadequate payment infrastructure, inconsistent regulation, limited policy coordination and user education, and security and fraud concerns.

AFRICAN BUSINESS