- Africa’s cross-border payments market is valued at $329 billion in 2025 and is projected to reach $1 trillion by 2035, growing at a compound annual growth rate of 12%.
- The continent has 781 million registered mobile money accounts, with transaction volumes totaling $837 billion, representing 66% of global mobile money transactions.
- Fintech innovations have reduced average remittance fees to 3.5%, significantly lower than the traditional bank fees of 8 to 12 percent.
- Despite improvements, Africa still has the highest remittance costs globally, averaging between 7.4% and 8.3%, due to regulatory fragmentation and infrastructure challenges.
- Only 55% of African countries allow electronic Know Your Customer (KYC) processes, which results in repeated compliance checks and slows cross-border payments.
- Inconsistent foreign exchange policies and poor liquidity force many transactions to be cleared offshore in USD or EUR, adding approximately $5 billion in extra annual costs.
- The Pan-African Payment and Settlement System (PAPSS) and the African Continental Free Trade Area (AfCFTA) are key initiatives working to enable instant local currency payments and harmonize financial systems across Africa.
- Informal remittance flows still account for 35% to 75% of total transfers, indicating that the actual size of the remittance market is much larger than official figures suggest.
- Regional differences are significant, with East Africa having over 60% digital remittance adoption and fees as low as 3%, while Southern Africa experiences the highest fees of 12 to 15 percent and heavy reliance on informal channels.
- Migrant workers typically send $200 to $500 monthly for family support, SMEs transact between $1,000 and $10,000 for trade, and corporates handle payments often exceeding $50,000 for payroll and supply chain needs.
So What?
While challenges like high costs and fragmented systems remain, new technologies and initiatives offer promising solutions. The future of payments holds great potential to boost economic growth and financial inclusion across the continent.
