Africa’s cross-border payments market is undergoing a major transformation, with its value reaching $329 billion in 2025 and projected to hit $1 trillion by 2035, according to a new report by Oui Capital. The report, titled “Africa’s Cross-Border Payment Landscape”, attributes this surge to growing trade integration, increased migration, and the rapid expansion of mobile money solutions across the continent.
According to the report, digital innovation is the primary driver of this growth. Africa now counts 781 million registered mobile money accounts, a 17% year-on-year increase, with total transaction volumes soaring to $837 billion. That figure represents 66% of all mobile money activity globally. Oui Capital notes that fintech platforms are significantly lowering remittance costs, averaging 3.5%, compared to the 8–12% charged by traditional financial institutions. Transactions that once took several days now clear within minutes, allowing small and medium-sized enterprises (SMEs) to increasingly rely on digital systems to conduct cross-border trade.
But despite these gains, the report warns that the cost of moving money across borders in Africa remains the highest in the world. Oui Capital estimates average remittance fees still range between 7.4% and 8.3%, a burden worsened by regulatory fragmentation, limited digital interoperability, and inconsistent foreign exchange policies. Only 55% of African countries currently permit electronic Know Your Customer (e-KYC) procedures, forcing users to undergo repeated compliance checks when transacting across borders.
The report also highlights that liquidity shortages often compel transactions to be routed through expensive offshore clearing systems, typically in U.S. dollars or euros, incurring an estimated $5 billion in additional costs every year. Nigeria is flagged as a key example, where erratic currency policies have made cross-border transfers especially cumbersome and unpredictable.
Still, reform efforts are gathering pace. Oui Capital points to the Pan-African Payment and Settlement System (PAPSS), launched in 2022, as a potential game-changer. The system allows real-time cross-border payments in local currencies and could save African countries up to $5 billion annually if widely adopted. Additionally, the African Continental Free Trade Area (AfCFTA) is working to harmonize financial systems, reduce dependence on foreign correspondent banks, and improve the flow of capital across the continent.
The report breaks down regional dynamics as well. In East Africa, more than 60% of remittances are now processed digitally, with transaction fees dropping to as low as 3%. In West Africa, Nigeria alone received $20 billion in 2022, but the report notes that high fees and platform interoperability issues are still pushing many toward informal channels. Southern Africa, still dominated by legacy bank-led systems, remains the costliest region, where remittance fees can reach 15% and nearly 40% of transfers take place outside formal channels. North Africa continues to rely heavily on inflows from Europe and the Middle East, with Egypt and Morocco leading in volume, though the financial landscape there is still largely bank-centric.
Oui Capital estimates that informal remittances account for anywhere from 35% to 75% of all cross-border flows in Africa. The report observes that digital solutions are starting to capture a greater share of this shadow economy, with some formal corridors now offering fees as low as 1.5%.
For African households, SMEs, and even large corporations, the stakes are high. According to the report, migrant workers typically remit between $200 and $500 each month to support their families. Informal traders and small businesses often send payments ranging from $1,000 to $10,000 for supplies and expansion. Large companies, meanwhile, are adopting fintech solutions for payroll and supply chain payments, with transactions frequently exceeding $50,000.
Ultimately, the report presents a continent at a pivotal moment. While digital innovation is reshaping Africa’s financial ecosystem, Oui Capital cautions that without regulatory reform, true progress will remain limited.
