As Africa accelerates its journey towards robust digital public infrastructure (DPI), instant payment systems (IPS) have emerged as a game-changer, driving a dramatic 37% growth in transaction volumes over the past five years. This evolution represents over $1 trillion in processed payments—a testament to the continent’s digital transformation.
This rising wave of IPS adoption is captured in the 2024 State of Inclusive Instant Payment Systems in Africa Report (SIIPS), unveiled last month in Accra, Ghana. The report not only showcases the progress but also highlights the challenges and opportunities that lie ahead.
A Snapshot of Progress
Over the past year, Africa’s IPS ecosystem has expanded significantly, now boasting 28 domestic systems across 20 countries and three regional ones. This brings the total number of functional IPS to 31, with 20 supporting e-money instruments. Case studies from Mauritius, South Africa, Tanzania, and Zimbabwe illustrate how inclusive payment infrastructure is being built to make instant payments more accessible to everyday users.
Despite these advances, the report underscores a sobering reality: no African country has yet achieved a “mature level of inclusivity” in its IPS. Many nations remain at “basic” or “progressed” levels, indicating that much work remains to ensure these systems serve all, especially vulnerable groups like women and low-income populations.
Gaps and Recommendations
The SIIPS 2024 report identifies critical gaps:
- Limited support for diverse use cases, including person-to-person (P2P), business-to-business (B2B), and government-to-person (G2P) transactions.
- Insufficient mechanisms for user recourse in cases of disputes or errors.
The report calls for a transition to Inclusive Instant Payment Systems (IIPS), emphasizing that truly inclusive systems must be affordable, accessible, and trustworthy, while offering meaningful recourse for end-users. Such systems could serve as the backbone of Africa’s DPI, enabling seamless money transfers between individuals, businesses, and governments.
Opportunities for Inclusivity
The report identifies key trends and opportunities to enhance inclusivity, such as:
- Integrating foundational DPI concepts.
- Accelerating the digitization of domestic payments.
- Strengthening regulatory frameworks for digital Know Your Customer (KYC) and fintech licensing.
Collaboration Driving Change
Produced in collaboration with the AfricaNenda Foundation, the UN Economic Commission for Africa (ECA), the World Bank, and with funding from the Bill & Melinda Gates Foundation, the SIIPS 2024 report is the third annual edition. It provides a comprehensive overview of Africa’s retail IPS landscape, examining its successes, challenges, and the road to a more inclusive future.
Earlier this year, AfricaNenda co-organized a workshop in Cameroon, focusing on financial inclusion in Central Africa—a reminder of the concerted efforts required to ensure IPS reach their full potential across the continent.
The Road Ahead
For IPS to drive meaningful financial inclusion, Africa must overcome barriers of trust, affordability, and accessibility. The path forward requires innovation, collaboration, and a relentless focus on inclusivity. With the right steps, Africa’s digital payment revolution can become a cornerstone of its economic future—empowering millions and transforming lives.
