A cashless continent

Africa is on the brink of a digital revolution, moving towards a cashless future with the promise of financial inclusion and economic growth. However, as the continent pushes forward, it faces significant structural barriers that hinder progress. Reda Helal, Managing Director & Co-Head of Processing Services, Africa, Network International, delved into the complexities and challenges during an interview with CNBC Africa's Tabitha Muthoni. The key theme of the discussion centered on the hurdles Africa must overcome to embrace a cashless economy fully. Three key points emerged from the conversation: unequal infrastructure, informal market dominance, and the critical role of policies and incentives in driving digital transformation. Helal highlighted the disparity in internet penetration, limited access to electricity, and the prevalence of feature phones as key obstacles to widespread digital adoption in Africa. Moreover, the dominance of cash transactions, especially in the informal sector, poses a significant challenge to the transition to a cashless society. Despite these barriers, Helal emphasized the importance of policy frameworks and incentives in incentivizing financial inclusion and fostering digital payment adoption. He cited examples from Saudi Arabia and Egypt, where government initiatives and regulatory support drove substantial progress towards cashless economies. Additionally, Helal underscored the need for financial literacy and cultural sensitivity in designing solutions that cater to the diverse needs and preferences across different African regions. The conversation also touched on the significance of collaboration, public-private partnerships, and scalable solutions in advancing Africa's digital payment landscape. Network International's approach to understanding local nuances while focusing on scalability and inclusivity reflects a concerted effort to drive financial innovation across the continent. With milestones being achieved and a growing number of mobile money accounts, Africa stands at the cusp of a transformative journey towards a more connected and financially inclusive future.