Tapping Africa's e-commerce potential

Africa's e-commerce industry is on the rise, fueled by increased investments in payment infrastructure that are linking countries across the continent. One key player in this space is Gituku Kirika, the Chief Executive Officer of Integrated Payment Services Limited, who recently shared insights on the thriving payment landscape in Africa and the opportunities and challenges that lie ahead. Kirika highlighted the significant growth in account-to-account instant payments, citing a 60% increase in Kenya over the last year, with similar trends observed in Nigeria, Ghana, and Tanzania. He also emphasized the convergence of account-to-account transfers and mobile money services, creating open and interoperable ecosystems that empower customers. However, Kirika pointed out a major challenge facing the industry - the lack of sufficient interoperability and open ecosystems. While the private sector has made strides in building payment networks, many of these systems remain closed-loop, restricting seamless transactions and hindering overall growth. Kirika stressed the importance of opening up these ecosystems to drive down costs, enhance efficiency, and foster financial inclusion. The conversation shifted towards the global perspective, with Kirika referencing the G20 Summit's consensus on digital public infrastructure (DPI) as a catalyst for development in the Global South. He outlined the three pillars of DPI - technology, governance, and ecosystem - underscoring the need for interoperability, public benefits, and collaboration within the industry. In light of this, Kirika urged stakeholders to work together towards a more inclusive and sustainable payment ecosystem. Looking ahead, Kirika addressed the Central Bank of Kenya's exploration of a unified payment system, acknowledging the potential impact on the current landscape. While awaiting further details from the central bank, Kirika expressed confidence in the private sector's ability to align with regulatory initiatives and drive the unification of payment systems. Overall, the conversation with Gituku Kirika shed light on the evolving e-commerce and payment landscape in Africa, highlighting the opportunities and challenges that come with fostering interoperable payment systems and embracing digital innovation.