Africa’s cross-border payments to hit $1trn on fintech boom.
Africa’s cross-border payment market is set to triple in size over the next decade, reaching $1 trillion by 2035, up from $329 billion projected in 2025, according to a new report by Oui Capital.
The Africa-focused venture capital firm disclosed that the surge is being driven by rapid advancements in mobile money, digital wallets, fintech innovation, and a steady rise in migration and intra-African trade.
The report, which provides an in-depth analysis of Africa’s payment landscape, highlights a projected compound annual growth rate (CAGR) of 12 percent for cross-border transactions.
“Despite the bullish outlook, persistent structural bottlenecks, including high transaction costs, regulatory fragmentation, and reliance on outdated financial infrastructure.
“Cross-border payments are a lifeline for millions of Africans and a critical engine for informal trade and household income,” the report states, pointing out that remittance inflows alone hit nearly $100 billion in 2023, equivalent to 5.2 percent of the continent’s GDP.
Yet, 75 percent of remittance flows in Sub-Saharan Africa still occur through informal channels, largely due to the prohibitively high costs of formal transfers, which average between 7.4 percent and 8.3 percent per transaction.
The report further disclosed that fintech platforms and mobile money services are rapidly transforming Africa’s financial terrain.
Source: Businessday
