Why Africa needs to promote crossborder payment

In a bid to boost intra-African trade and streamline cross-border payments, Akeem Lawal, the Managing Director of Payment Processing and Switching at Interswitch's Purepay, highlighted the necessity of creating an enabling environment for innovators to thrive. Lawal stressed the pivotal role of technology in dismantling obstacles preventing African countries from trading effectively among themselves and globally. The conversation on CNBC Africa shed light on the potential solutions that technology can offer to enhance cross-border payments, promote currency convertibility, and streamline trade processes through automation and digitization. Lawal emphasized the importance of collaboration among stakeholders, regulatory bodies, and innovators to address the challenges and drive innovation in the payment ecosystem. Lawal emphasized the pivotal role of technology in dismantling obstacles preventing African countries from trading effectively among themselves and globally. The conversation on CNBC Africa shed light on the potential solutions that technology can offer to enhance cross-border payments, promote currency convertibility, and streamline trade processes through automation and digitization. Lawal emphasized the importance of collaboration among stakeholders, regulatory bodies, and innovators to address the challenges and drive innovation in the payment ecosystem. Lawal highlighted the significance of creating an environment that nurtures payment and cross-border trade innovators who can devise solutions to existing challenges. He referenced initiatives like Zenith Hackathon as a step towards promoting innovation among young entrepreneurial minds in the continent. Lawal stressed the need for structured efforts to foster innovation and collaboration between jurisdictions and regulators to facilitate pan-African dialogues and decision-making processes conducive to enhancing trade across the continent. Lawal also delved into the issue of trust in cross-border transactions, citing examples of trust-building measures implemented by Nigerian e-commerce platforms such as pay-on-delivery services. He discussed the concept of escrow as a potential solution to enhance trust in cross-border transactions, allowing customers to release payments only upon satisfaction with the received goods. Lawal outlined InterSwitch's endeavors to address trust and payment challenges in cross-border trade, emphasizing the company's focus on building a platform for Pan-African payments and facilitating currency exchange within the continent. Lawal's insights underscored the urgency of promoting innovation, collaboration, and trust-building mechanisms to propel the African Continental Free Trade Area (AFCFTA) and transform the landscape of cross-border payments and intra-African trade. As Africa paves the way for enhanced connectivity and financial integration, the emphasis on technological advancements and regulatory alignment becomes paramount to drive economic growth and prosperity across the continent.