Africa's cross-border payments sector is poised for explosive growth, projected to hit $1 trillion by 2035—up from $329 billion in 2025—unlocking massive potential for small businesses and traders across the continent.
The projection comes from a new report by Oui Capital, which attributes the coming boom to fintech innovation, the widespread adoption of mobile money, and the deepening of intra-African trade.
With over 781 million registered mobile money accounts recorded in 2022 alone (a 17% increase year-on-year), Africa now processes 66% of global mobile money transaction volumes, totaling $837 billion. These platforms have become vital financial tools for entrepreneurs, traders, and MSMEs operating across borders, reducing transaction times from days to minutes.
Oui Capital notes that fintech solutions have also slashed remittance costs to as low as 3.5%, compared to 7.4–8.3% from traditional channels. But persistent challenges—including high foreign exchange costs, regulatory inconsistencies, and weak interoperability—are limiting the full benefits for small businesses.
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The report estimates that Africa loses $5 billion annually to FX inefficiencies, fragmented policies, and double currency conversions. In markets like Nigeria, unstable forex policies further strain cross-border transactions, especially for importers and digital service exporters.
Another key bottleneck: Only 55% of African countries permit e-KYC processes, which limits onboarding and raises operational costs for digital financial platforms serving the SME space.
However, the report highlights several high-impact opportunities:
- Improving interoperability between mobile money services could save billions in transaction costs.
- Stablecoins and crypto-based settlements could cut transaction fees by up to 60% and bypass FX constraints.
- Building decentralized FX exchanges within the continent could boost liquidity and protect local businesses from volatile exchange rates.
Oui Capital's analysis underscores the urgent need for coordinated reforms, infrastructure investment, and regulatory alignment to truly unlock Africa's digital payment potential and support inclusive growth for small businesses and local economies.
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