Sabine Mensah, Deputy CEO of AfricanNenda Foundation, expressed confidence that Africa will achieve universal access to financial inclusion by 2030, citing the rapid rollout of instant payment systems (IPSs) across the continent. Speaking at the launch of the State of Inclusive Instant Payments Systems (SIIPS) in Africa Report on 21 November, Mensah highlighted the continent’s leadership in global instant payment growth and reaffirmed that Africa’s trajectory in digital finance is set to bridge the financial inclusion gap.
According to the SIIPS report, compiled by the AfricaNenda Foundation in partnership with the World Bank and the United Nations Economic Commission for Africa (UNECA), 31 active IPSs in Africa processed US$1 trillion in transactions in 2023. This marks a 273% increase in transaction value since 2020, and a 47% rise in transaction volume. The report further reveals that 27 new IPSs are under development, with seven expected to launch within the next 18 months. Mensah is confident that, by 2030, all African countries will have functional IPSs, providing a significant boost to financial inclusion.
“This progress is pivotal in the goal of universal access to financial inclusion,” Mensah stated. “If all these systems are inclusive, they will impact financial inclusion positively. Nine IPSs have already reached a progressed level of inclusivity.”
Challenges Persist Despite Progress
Despite the impressive growth of IPSs, Africa still faces a significant financial inclusion gap, with over 400 million adults—40% of the adult population—remaining unbanked. Alarmingly, 60% of these individuals are women. Mensah pointed out that consumer research conducted by AfricanNenda identified three key barriers to financial inclusion: high costs of digital finance compared to cash usage, rampant digital fraud, and concerns about data privacy.
In Ghana, for instance, taxes on mobile money transfers have deterred the use of digital finance. Both leading presidential candidates in the upcoming elections have pledged to scrap the transfer tax. Mensah stressed that African governments should focus on incentivizing digital finance users rather than imposing additional costs that hinder adoption.
The Road Ahead: Collaboration and Transparency
Mensah emphasized the need for stronger consumer protection mechanisms and transparency in the financial sector to address the barriers to financial inclusion. She called for improved infrastructure and regulatory frameworks, including transparent consumer recourse mechanisms to handle complaints efficiently and build trust in digital finance systems.
“We are seeing positive engagement from stakeholders, including policymakers, regulators, and service providers. They are committed to overcoming the barriers that still exist,” Mensah added. “This gives us confidence that, in the coming years, Africa’s instant payment systems will reach maturity and become safer, more affordable, and accessible, making them more appealing than cash.”
Additionally, Mensah called for greater data transparency from regulators and IPS operators. Sharing data would enable more comprehensive reports and better analysis of the progress being made. She urged the media to help push for greater data sharing to highlight success stories and best practices that could improve the digital payments ecosystem across the continent.
“We currently have nine inclusive IPSs in Africa, and we need to share these success stories to inspire others,” she concluded. “This will be possible when countries collaborate and share their data, enabling us to create a more robust and inclusive financial ecosystem for Africa.”
