Digital Payment Systems in Africa Surge by 37% Over Five Years, Reveals 2024 SIIPS Report

Digital payment systems in Africa have experienced a 37% growth in transaction volume over the past five years, indicating a significant shift in the continent’s financial ecosystem. This development is detailed in the 2024 SIIPS Report, launched in Accra on Wednesday, November 20, 2024.

The report also highlights that there are currently 31 operational Instant Payment Systems (IPS) across 26 countries, with 27 more nations preparing to introduce similar systems. Despite this progress, challenges remain in achieving financial inclusion, particularly for women and other vulnerable groups, who face obstacles such as fraud concerns and limited recourse mechanisms.

Chief Executive Officer of AfricaNenda, Dr. Robert Ochola, emphasized the need for a collective effort to expand IPS and deliver solutions for every citizen, especially those in rural and underserved areas. “AfricaNenda and its partners are calling for a collective push to expand IPS and deliver solutions that cater to every citizen, particularly those in rural and underserved areas. The goal is to ensure universal financial inclusion by 2030,” he said.

The report notes a 39% rise in IPS transaction values but stresses the need for more robust systems to enhance security and network reliability. Ensuring effective recourse mechanisms to address fraud and privacy concerns is critical, particularly for women, who often feel unsafe using digital payment platforms.

Global Director of Finance at the World Bank, Jean Pesme, underscored the transformative potential of IPS, stating, “Access to safe, low-cost, and efficient digital payments can transform lives, close the gender finance gap, and foster resilience. While progress is remarkable, more needs to be done through fintech promotion and private sector involvement.”

On the sidelines of the launch, Deputy Chief Executive Officer of AfricaNenda Foundation, Sabine Mensah, urged financial regulators to enhance data transparency. The report calls for accelerated innovation in fintech licensing, universal IPS adoption, and cross-border payment systems. These measures aim to create a more inclusive and interconnected digital payment infrastructure, driving Africa closer to universal financial inclusion.