AfricaNenda CEO: Unlocking payment systems crucial to AfCFTA

At the Mobile World Congress Africa in Kigali, AfricaNenda, the United Nations Economic Commission for Africa, and the World Bank unveiled the State of Instant and Inclusive Payment Systems in Africa report. CNBC Africa interviewed Robert Ochola, the CEO of AfricaNenda, to delve deeper into the key highlights of the report. Ochola highlighted the persisting financial exclusion of 400 million Africans who lack access to formal financial solutions. The report shed light on the progress and challenges in developing payment systems across the continent. Currently, 29 systems are in various stages of development, with efforts focusing on enhancing financial inclusion. One key finding was that 60% of modern-day consumers use digital payments, leading to lower transaction costs but also posing cybersecurity risks. The report emphasized the need for consumer education to mitigate such risks and build trust in digital financial services. Despite efforts to boost inclusivity, none of the systems assessed had reached a fully mature inclusivity level. Only five systems showed significant progress, indicating gaps in inclusion, governance structure, and collaboration with FinTechs. Ochola stressed the importance of working together across markets to share knowledge and prevent reinventing the wheel in policy, regulation, technology, and security aspects. The rapid growth from two instant payment systems in 2012 to 29 systems currently showcased significant progress. However, Ochola highlighted the need to address gaps in development to accelerate the growth and ensure seamless transactions within and across African countries. Collaboration, harmonization of regulations, and a focus on affordability and inclusivity were identified as critical factors in driving the continent towards a common payment landscape essential for the African Continental Free Trade Area and the AU's Agenda 2063.