Africa’s cross-border payments market to hit $1 trillion by 2035—Report 

The sector is expected to grow at a compound annual growth rate (CAGR) of 12%, driven by fintech innovation, intra-African trade expansion, and soaring mobile money usage.

However, the report noted that despite its immense potential, the market remains riddled with structural inefficiencies that cost businesses and consumers billions of dollars annually.

According to the report, Africa is already the global leader in mobile money adoption.

In 2022, the continent recorded 781 million registered mobile money accounts, a 17% year-on-year increase.

“Only 55% of African countries currently allow electronic Know-Your-Customer (e-KYC) procedures, forcing fintechs and financial institutions to repeat compliance processes across markets,” the report stated.

Oui Capital estimates that $5 billion is lost annually due to poor FX liquidity, double currency conversions, and lack of interoperable digital payment infrastructure.

It added that the reliance on offshore USD/EUR clearing for intra-African transactions compounds the problem.

“In countries like Nigeria, inconsistent forex policies and liquidity challenges create further bottlenecks,” the report stated.

The report identifies major opportunities to unlock value, which include:

The Oui Capital’s report comes out at a time cross-border payment is gaining momentum in Africa through the Pan-African Payment and Settlement System (PAPPS) initiative.

Naijaonpoint reported that 22 Nigerian commercial banks have now joined the platform to streamline continental cross-border payments for their customers.

Launched in January 2022 by Afreximbank in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, PAPSS serves as a centralized platform that enables instant, secure, and efficient cross-border transactions across Africa.

It allows for payments to be made in local currencies, thereby reducing reliance on third-party currencies like the U.S. dollar, minimizing transaction costs, and supporting the expansion of trade under the AfCFTA.