Africa Nenda, in collaboration with the World Bank and the United Nations Economic Commission for Africa (UNECA), has launched the SIIPS Report 2024, shedding light on the rapid expansion of Instant Payment Systems (IPS) across Africa. This comprehensive report reveals that 31 IPS are currently operational in 26 countries, with an additional 27 nations preparing to launch their own systems, signaling the continent’s growing digital payment infrastructure. The report also highlights the immense potential of IPS to drive financial inclusion for underserved communities, particularly in rural areas.
Over the past five years, the volume and value of transactions processed through IPS in Africa have seen impressive growth, increasing by 37% and 39%, respectively. This surge reflects the broader trend of digital payment adoption, driven by factors such as the rise in mobile phone usage, innovations in fintech, and supportive regulatory frameworks. Despite this growth, the report notes that no system has yet reached a level of maturity that ensures full inclusivity for all users, especially for vulnerable groups such as women, who continue to face barriers in accessing and using digital payment systems.
The SIIPS Report 2024 stresses that while progress has been made, significant challenges remain in achieving true financial inclusivity. Issues such as security concerns, fraud, and unreliable networks continue to hinder the adoption of digital payments, particularly for women and other vulnerable groups. The report calls for urgent action to address these gaps, including the development of transparent consumer recourse mechanisms and solutions that cater to every citizen, especially those in underserved areas.
Dr. Robert Ochola, CEO of AfricaNenda, emphasized the need for a collective effort to expand IPS and ensure that these systems can serve all citizens by 2030. This vision of universal financial inclusion is achievable, but it will require the successful implementation of the 27 planned IPS initiatives, alongside ongoing efforts to overcome the existing barriers that limit access and adoption.
Jean Pesme, Global Director of Finance at the World Bank, highlighted the transformative potential of safe, low-cost, and efficient digital payments. According to Pesme, the success of IPS in Africa can help close the gender gap in finance, foster financial resilience in emerging markets, and drive economic growth, particularly for small businesses and women. The World Bank is actively supporting countries in this effort through Project FASTT, which aims to help nations harness the full potential of fast payment systems.
Stephen Karingi, Director at UNECA, emphasized the importance of trusted, interoperable, and instant payment systems in advancing economic integration and financial inclusion across the continent. The report underscores how these systems are critical for facilitating seamless transactions, supporting initiatives like the African Continental Free Trade Area (AfCFTA), and aligning with the African Union’s Agenda 2063. The collaboration between AfricaNenda, the World Bank, and UNECA is a key step toward realizing these ambitious goals.
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