Payment Corridors for African Business Transactions

#Africa bleeds $5B a year not to #corruption or #mismanagement, but just to move money within its own borders. Example: A Kenyan business paying a Ugandan supplier. Instead of Nairobi → Kampala, money goes: Nairobi → USD conversion (1–2%). USD routed via New York/London ($20–50 fee). USD → Ugandan shillings (another 1–2%). By the time a $26,000 invoice is paid, $500–1,000 is gone. Whilst we may be denied visas, our money travels freely through New York. And it’s not just trade: Africa’s #diaspora sends $95B home each year, yet pays the world’s highest remittance costs. -We pay the highest cost for credit. -We pay the highest cost for payments. -We pay the highest cost to send our own money home. It’s not inefficiency. It’s design. The #GlobalFinancialSystem wasn’t built for us. The good news? Solutions exist. #PAPSS (Pan-African Payment and Settlement System) is already live linking 15 central banks, 150 commercial banks, and 14 payment switches, with the capacity to handle $300B in intra-African trade annually. Through PAPSS, that same Kenya–Uganda  transaction could  look very different: -One direct conversion from KES → UGX (0.2–0.5% spread). -Settlement netted via African central banks. -Funds received in hours, not days. Estimated cost: $60–150.  Potential savings: $500–950 on a single $26,000 payment. No detours. Value stays in Africa. The challenge isn’t invention. It’s implementation. One Africa. One market. One #payment system. AI image below*

Every time a Kenyan exporter pays $20 in currency conversion fees just to send goods to Uganda, that's a “dollar tax” eating into margins. Imagine a world where trade between Africa’s neighbors settles in their respective currencies, no forced conversion to USD, no hidden spreads, no foreign-exchange drains. That world just got closer. COMESA has launched a Digital Retail Payments Platform (DRPP) enabling cross-border trade in local currencies, removing the dollar conversion step for the first time in the bloc. Kenya, now chairing COMESA, is pushing hard for this to scale. This matters for Africa more than you think. Trade costs, currency volatility, and FX dependence are among the biggest killers of growth and competitiveness on the continent. Every time a Kenyan exporter pays conversion fees to trade with another country, that’s a “dollar tax,” an invisible tariff on African trade. When every transaction has to pass through New York or London, we’re not just paying a fee; we’re surrendering margin, time, and control. The problem runs deeper than fees. Africa has over 40 currencies, yet most trade still routes through USD or EUR because liquidity between African pairs is thin. Each conversion adds cost and delay, and those costs punish SMEs most. Our trade is local, but our payments have stayed colonial. That’s what the DRPP is designed to fix. It links member banks and central banks, enabling real-time settlement in local currencies. A pilot between Malawi and Zambia is already live, with rollout planned across 21 countries. Target transaction cost: below 3%. This isn’t fintech hype, it’s financial infrastructure reform. If it works, the impact will be profound. It can preserve FX reserves, protect traders from USD volatility, and finally align Africa’s payment rails with its policy ambitions. Once payments move seamlessly across borders, trade integration stops being theory and starts being practice. Still, technology alone won’t make it work. If capital controls, liquidity gaps, or weak settlement rules creep in, confidence will vanish. The lesson from other systems is clear: payments integration fails when governance doesn’t keep pace. If systems like the DRPP hold, they’ll do more for African integration than a dozen summits combined. They’ll make African trade faster, cheaper, and finally, ours. The real test of sovereignty isn’t political. It’s whether we can move value within our own borders, on our own terms. The message for policymakers and investors is clear: get the systems right, and everything else follows. Build payment rails that are transparent, interoperable, and protected from politics, and you’ll create the credibility markets need to function. Africa’s integration won’t be written in policy papers; it’ll be built in the code, compliance, and confidence that make trade frictionless. PS. If you believe Africa’s trade future depends on systems that work, not speeches that promise, repost this.

Africa’s Cross-Border Payments Are at a Turning Point — But Can Digital Fix the “Last Mile”? Africa’s $200+ billion* annual cross-border payments market is growing fast, but cost, speed, and transparency gaps still hold it back. Citi’s latest research shows that digital rails — from ISO 20022 to regional schemes like PAPSS — could change the game. The question: will the ecosystem move together, or build new silos? ⸻ THEMES • Speed & Transparency Are Now Baseline Expectations — Swift GPI and ISO 20022 adoption are giving banks and corporates package-tracking-style visibility on payments. • Regulators Are Raising the Stakes — Multiple central banks are piloting instant cross-border settlement models to reduce reliance on USD/EUR corridors. • Fintechs Are Closing Merchant Gaps — Players like Yoco are targeting SMEs with POS, e-commerce, and reconciliation tools to smooth the last mile. VARIATIONS • PAPSS in West Africa enables real-time settlement in local currencies — but adoption remains uneven. • Southern Africa still leans on legacy correspondent models, with higher friction and cost. • BRICS Pay pilots could bypass traditional rails entirely, but risk fragmentation if not interoperable. IMPLICATIONS • Banks risk losing corporate flows to fintechs if they don’t match speed and user experience. • Regional rails will only succeed if they integrate seamlessly with global systems. • Digital assets (stablecoins, CBDCs) offer potential cost savings but will stall without clear regulatory alignment. WHAT’S NEXT The future hinges on ecosystem orchestration, not just tech. To truly modernise, Africa’s cross-border payments must combine: 1. Common data standards (ISO 20022 end-to-end) 2. Interoperable domestic and regional scheme 3. Regulatory frameworks that enable innovation without silos ⸻ The real disruptor isn’t a single new rail — it’s multi-rail intelligence that routes payments dynamically for cost, speed, and compliance, in real time. Opinions: my own. Source: Citi, “Cross-Border Payments in Africa” #payments #africa #iso20022 #digitalpayments

Africa Is Paying Over $5 Billion a Year—Just to Use the US Dollar Here’s a shocking reality: the United States accounts for less than 9% of Africa’s trade, yet over half of Africa’s international trade is still settled in US dollars. This mismatch between commercial relationships and financial settlements is costing the continent more than $5 billion every year—in currency conversion fees, exchange rate risks, and unnecessary reliance on external financial systems. Imagine two African countries trading goods—say Kenya and Nigeria—yet having to convert their local currencies into US dollars just to complete the transaction. It’s not just inefficient; it’s economically unsound. Why This Needs to Change: High Transaction Costs: Currency conversion eats into profits. Exchange Rate Risk: Dollar fluctuations create uncertainty. Weak Regional Integration: Dependence on the dollar sidelines Africa’s own financial infrastructure. Loss of Economic Control: Relying on a foreign currency gives influence to foreign powers over African economies. What Africa Should Be Doing Instead: Promote Local Currency Trade: It’s cheaper, more efficient, and strengthens regional ties. Create Bilateral Currency Agreements: Let African nations trade in each other’s currencies. Invest in Digital Payment Systems: A Pan-African settlement system can revolutionize intra-African trade. Build a Continental Exchange Mechanism: Like Europe’s EMS, tailored for Africa. The Bottom Line: Africa doesn’t need permission to trade with itself. It needs financial independence to match its commercial potential. Ending the dollar’s dominance in African trade is not about politics—it’s about economic survival. #DeDollarization #AfricanEconomy #IntraAfricanTrade #TradeReform #AfCFTA #EconomicSovereignty #DigitalAfrica #CurrencyIndependence #PanAfricanism #AfricaFirst

South Africa has 10% crypto ownership. Nigeria and Kenya both over 5%. And they're not buying Bitcoin. 𝗧𝗵𝗲𝘆 𝘄𝗮𝗻𝘁 𝘀𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀 𝘁𝗵𝗮𝘁 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝘄𝗼𝗿𝗸 𝗳𝗼𝗿 𝘁𝗵𝗲𝗶𝗿 𝗱𝗮𝗶𝗹𝘆 𝗹𝗶𝘃𝗲𝘀. Look at what's happening on the ground: → 540 million Africans under 25 years old → 66% have mobile phones, but only 43% have bank accounts → Mobile money transactions at all time highs → Cross-border payments still costing 5-12% in fees (depending on routes) 𝗬𝗼𝘂’𝗱 𝘀𝗲𝗲 𝘁𝗵𝗶𝘀 𝗮𝘀 𝘁𝗵𝗲 𝗽𝗲𝗿𝗳𝗲𝗰𝘁 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝘀𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻. 𝟰 𝗥𝗲𝗮𝗹 𝗨𝘀𝗲 𝗖𝗮𝘀𝗲𝘀 𝗼𝗳 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻𝘀 𝗶𝗻 𝗔𝗳𝗿𝗶𝗰𝗮: 1️⃣ 𝗖𝗿𝗼𝘀𝘀-𝗕𝗼𝗿𝗱𝗲𝗿 𝗥𝗲𝗺𝗶𝘁𝘁𝗮𝗻𝗰𝗲𝘀 Workers and freelancers convert earnings into USDT/USDC and send home instantly, avoiding 7–12% remittance fees. Stablecoins beat MTOs like Western Union in both speed and cost. 2️⃣ 𝗦𝗠𝗘 𝗜𝗺𝗽𝗼𝗿𝘁 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 Small businesses use stablecoins to pay suppliers directly. No FX shortages, no failed bank wires, no week-long delays. This corridor is exploding because SMEs can finally settle reliably. 3️⃣ 𝗢𝗻-𝗖𝗵𝗮𝗶𝗻 𝗦𝗮𝘃𝗶𝗻𝗴𝘀 𝘁𝗼 𝗕𝗲𝗮𝘁 𝗟𝗼𝗰𝗮𝗹 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 In countries like Nigeria, Ghana, Zimbabwe — where inflation erodes — stablecoins act as a digital dollar savings account. USDT becomes protection, not speculation. 4️⃣ 𝗠𝗲𝗿𝗰𝗵𝗮𝗻𝘁 & 𝗠𝗼𝗯𝗶𝗹𝗲-𝗠𝗼𝗻𝗲𝘆 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻 Fintechs now offer stablecoin → mobile money swaps, letting users cash out into local rails instantly. This bridges the gap between on-chain value and real-world spending. 𝘼𝙛𝙧𝙞𝙘𝙖 𝙞𝙨 𝙬𝙝𝙚𝙧𝙚 𝙨𝙩𝙖𝙗𝙡𝙚𝙘𝙤𝙞𝙣𝙨 𝙗𝙚𝙘𝙤𝙢𝙚 𝙧𝙚𝙖𝙡 𝙛𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡 𝙞𝙣𝙛𝙧𝙖𝙨𝙩𝙧𝙪𝙘𝙩𝙪𝙧𝙚. Source: Sandy Peng #Fintech #Payments #DigitalPayments #PaymentInnovation #PayTech #Stablecoins #Tokenization #Web3Payments #OnChainFinance #CryptoPayments #Blockchain #DigitalAssets #DeFi #Web3Infrastructure #Remittances

"Can you really move €85k from Ghana to Poland in 47 minutes?" That message came from a logistics CEO in Warsaw at 10.15 am. His his customer owed him 85k and was struggling to pay without incurring the kind of expenses that would put them off doing business again. Traditional route? His bank quoted 5-7 business days, 3 different exchanges at 12%. Maybe 10 days if "complications arose." (Translation: Your money will take a vacation in correspondent banking hell.) I called him back at 10.20am. By 1230pm, his Ghanese customer had been onboarded. €85k moved from Ghana to Warsaw. Faster than ordering on Uber Eats. Here's what that WhatsApp taught me about African payments: Speed isn't a luxury. It's survival. That logistics CEO? He'd been waiting for his money for three weeks trying to navigate traditional banking with his customer. His competitors using Damisa were already unloading their next shipment. The real Africa opportunity isn't in banking the unbanked. It's in unshackling the already banked & the already #Stablecoin friendly companies. The businesses moving millions but trapped in 1970s payment infrastructure. Trust beats technology every time. We could have built the slickest app. Instead, we built relationships. That CEO didn't know or trust our tech stack (yet). He trusted that I'd answer a whatsapp at Cheetah speed. What happened next: • We turned his problem into a solution fast • He has referred at least 4 other companies transacting significant volume • His Sub Sahara African partners now insist on Damisa for all Global transactions The kicker? Six months ago, this same CEO's team told me stablecoins were "too risky" for serious business. Now he WhatsApps me deal flow. The world doesn't need more fintech apps. It needs infrastructure that treats businesses like they matter. Not in 5-7 business days. Right now. That's why we built Damisa. #AfricanPayments #Fintech #CrossBorder #Stablecoins #Damisa #WestAfrica #B2BPayments

Imagine sending $200 to your family and $115 vanishes in fees. That’s the reality in parts of Africa. In Tanzania, for example, remittance costs can exceed 60% of the amount sent. Yes, you read that right. With thousands of fintechs on the continent, shouldn’t this be fixed by now? Here’s what’s really going on: -Over-regulation and red tape Governments demand rigid compliance, licenses, and local partnerships. This slows things down and raises costs. - Limited access to global clearing networks Africa’s fintechs don’t always plug into major payment rails (like SWIFT or VisaNet). So they rely on intermediaries each taking a cut. - Low transaction volumes = high per-user cost Unlike in Asia, where millions send small amounts daily, Africa’s remittance corridors are thinner. Fewer users = less scale = higher prices. - Old-school partnerships Some fintechs still rely on traditional banks or MTOs (Money Transfer Operators) that haven’t innovated in decades but still eat fees. Are we building fintechs for PR or for people? Because if a grandmother in Mwanza can’t receive $200 from her son in Dubai without losing half to fees, we’ve built nothing of value. The opportunity is massive. But until we simplify rails, lower fees, and stop chasing “unicorn” titles, Africans will keep getting taxed for staying connected. #Fintech #Remittances #AfricanInnovation #ImpactOverHype #FintechForGood #StartupAfrica #FinancialInclusion #LinkedInVoices #DiasporaRemittances #AfricaFintech

70% 𝐨𝐟 𝐚𝐥𝐥 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐀𝐟𝐫𝐢𝐜𝐚 𝐚𝐫𝐞 𝐬𝐭𝐢𝐥𝐥 𝐜𝐚𝐬𝐡—𝐛𝐮𝐭 𝐦𝐨𝐛𝐢𝐥𝐞 𝐦𝐨𝐧𝐞𝐲 𝐦𝐨𝐯𝐞𝐬 𝐨𝐯𝐞𝐫 $1𝐓 𝐚 𝐲𝐞𝐚𝐫. Across Africa, digital payments are evolving fast, but not in one direction. AGPAYTECH LTD.’s "Payment Systems in Africa 2024: Many Paths, One Goal" shows how payments are shifting across the continent. ➔ 𝐂𝐁𝐃𝐂𝐬 𝐚𝐫𝐞 𝐢𝐧 𝐦𝐨𝐭𝐢𝐨𝐧, 𝐛𝐮𝐭 𝐩𝐫𝐨𝐠𝐫𝐞𝐬𝐬 𝐢𝐬 𝐮𝐧𝐞𝐯𝐞𝐧. Nigeria’s eNaira is already live, Ghana, South Africa, and Egypt are piloting, while Kenya has put its plans on hold. ➔ 𝐌𝐨𝐛𝐢𝐥𝐞 𝐦𝐨𝐧𝐞𝐲 𝐢𝐬 𝐬𝐭𝐢𝐥𝐥 𝐭𝐡𝐞 𝐤𝐢𝐧𝐠 𝐨𝐟 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬. In Kenya, Ghana, Rwanda, and Nigeria, platforms like M-Pesa, MTN MoMo, and Flutterwave are driving financial inclusion; offering not just payments, but savings, credit, and even insurance. ➔ 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐰𝐚𝐥𝐥𝐞𝐭𝐬 𝐚𝐫𝐞 𝐞𝐱𝐩𝐚𝐧𝐝𝐢𝐧𝐠 𝐛𝐞𝐲𝐨𝐧𝐝 𝐫𝐞𝐦𝐢𝐭𝐭𝐚𝐧𝐜𝐞𝐬. Egypt’s Fawry and Vodafone Cash are seeing massive adoption in e-commerce, proving that Africa’s digital wallets are not only for sending money but also powering a new economy. ➔ 𝐂𝐫𝐨𝐬𝐬-𝐛𝐨𝐫𝐝𝐞𝐫 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐧𝐞𝐱𝐭 𝐟𝐫𝐨𝐧𝐭𝐢𝐞𝐫. While mobile money is dominant locally, businesses need better cross-border rails. Fintechs are stepping in, but fragmentation, regulation, and forex volatility are still major hurdles. Africa’s payment landscape isn’t following a single blueprint. Countries are experimenting, regulators are adapting, and consumers are embracing what works best for them. 💬 Which payment model will lead Africa’s next wave: CBDCs, mobile money, or fintech-powered wallets? Let’s talk. 🔗 Full insights here: https://lnkd.in/g87grhS2 #DigitalPayments #FintechAfrica #FinancialInclusion Like 👍 | Comment 💬 | Repost 🔄 | Let’s Connect 🤝

STANDARD BANK IS THE FIRST BIG AFRICAN BANK TO BREAK FREE FROM THE DOLLAR 💵 | CIPS VS SWIFT 🔗 https://lnkd.in/eEd6bdrU South Africa’s Standard Bank just made history as the first African bank to integrate directly with China’s Cross-Border Interbank Payment System (CIPS)—and this changes everything for Africa-China trade. For decades, African businesses have been paying premium fees and waiting days for payments to Chinese suppliers because transactions had to route through New York or London, converting from local currency to dollars to yuan. That inefficiency is about to end. In this video, I break down: What CIPS actually is and how it differs from SWIFT Why Standard Bank’s integration matters for the entire continent The real costs African businesses have been paying for outdated payment systems How Africa-China trade exploded from $11.67 billion (2000) to $296 billion (2024) The geopolitical implications of Africa reducing dollar dependence What this means for the African Continental Free Trade Area How smaller African banks will benefit from this multiplier effect With ICBC owning 20.1% of Standard Bank and CIPS processing $24.47 trillion annually across 121 countries, this isn’t just a technical banking upgrade—it’s Africa positioning itself for a multipolar financial future. The numbers are staggering: CIPS transaction volumes have more than tripled since 2020, and 34% of African businesses now identify China as their primary import source. The infrastructure to support this trade is finally catching up. Is this the beginning of Africa’s financial independence? Drop your thoughts in the comments. 📊 SOURCES & RESEARCH: Standard Bank Corporate Communications People’s Bank of China CIPS Reports South African Reserve Bank Standard Bank Trade Barometer 2024 Nanyang Technological University Research SWIFT RMB Tracker June 2025 #StandardBank #CIPS #AfricaChinaTrade #AfricanEconomy CrossBorderPayments RMBSettlement AfCFTA SouthAfrica

As the African Union Summit wrapped in Addis Ababa last week, one question kept coming up: Can Africa realistically build continent-wide financial #infrastructure that works across all 54 states? That question made me revisit something that launched quietly last year. In June 2025, at the Annual Meetings of the African Export-Import Bank (Afreximbank), leaders introduced #PAPSSCARD in partnership with the Pan-African Payment and Settlement System. The goal is simple: process African card payments within Africa instead of routing transactions through global networks. The logic makes sense. If the African Continental Free Trade Agreement is serious about deepening #intra-African trade, payments infrastructure has to align with that ambition. Lower transaction #costs, retained financial #data, and reduced #value leakage are meaningful policy goals. But how does a unified continental payments tool improve economic health across very different economies? Africa is not economically uniform. Some countries have relatively stable #currencies and expanding digital #finance ecosystems. Others face persistent FX shortages, high inflation, debt stress, or fragile banking systems. Some operate within monetary unions. Others maintain tightly managed #exchange regimes. #Integration tools assume coordination benefits outweigh structural asymmetries. Payments integration can reduce friction, but it does not automatically harmonize currency volatility, capital controls, or fiscal imbalances. If transaction settlement still depends on underlying #currency stability, liquidity, and regulatory capacity, then the impact of a unified card scheme will not be evenly distributed. There are also practical considerations: - Will merchants adopt it if global networks are already embedded? - Will consumers trust it at scale? - How will liquidity risk be managed across volatile currencies? - Which economies benefit most in early adoption phases? Financial #sovereignty is compelling language. But economic health ultimately depends on #productivity, macro #stability, #institutional strength, and governance. Payments infrastructure can support growth. It cannot substitute for it. None of this dismisses PAPSSCARD. It is a serious institutional experiment in continental coordination. But as leaders speak about integration in Addis, the real conversation is this: what does integration look like when starting points are so unequal? And how do we design continental tools that strengthen all 54 economies, not just the most institutionally prepared ones? Curious how others are thinking about this balance between ambition and economic heterogeneity. Read more here: https://lnkd.in/eYKTgEt5 #NotesFromTheIntersection #Economics #Africa LinkedIn