Expanding Instant Payment Systems Thrive in South Africa, Ethiopia, Morocco
In the past year, Africa has witnessed a surge in the establishment of expanding instant payment systems, with recent launches reported in South Africa, Ethiopia, and Morocco, as stated in a new report.
The comprehensive report, released by AfricaNenda, a think tank dedicated to advancing digital financial services for the financially underserved, revealed that these additions bring the total count of active domestic and regional instant payment systems on the continent to 32.
African Nations' Expanding Instant Payment Systems
AfricaNenda's annual State of Inclusive Instant Payment Systems (SIIPS) in Africa report unveiled substantial growth trends since 2018, with the volume of payments and the total value of transactions experiencing a rapid increase of 47% and 39%, respectively.
In 2022 alone, instant payment systems in Africa facilitated nearly 32 billion transactions, amounting to a staggering $1.2 trillion.
This noteworthy data emerged from a collaborative effort between AfricaNenda, the United Nations Economic Commission for Africa (UNECA), and the World Bank.
Robert Ochola, CEO of AfricaNenda, commented on the remarkable expansion, stating, "The notable growth of instant payment systems in Africa since last year is a testament to our collective commitment to driving positive change on the continent."
However, despite the significant progress, the report indicated that over 400 million African adults still remain excluded from instant payment systems.
Moreover, 27 countries are yet to establish a domestic instant payment system, while 17 countries have plans to do so in the future.
Additionally, preparations are underway for the implementation of three regional payment systems across the continent.