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With shared intelligence, collaboration and technology at the core, stakeholders at the regulatory technology conference submitted that opportunities abound in the region’s payment ecosystem. ADEYEMI ADEPETUN writes.
In an increasingly interconnected world, the seamless movement of money across borders is no longer a mere convenience but a fundamental driver of global commerce, economic growth, and individual prosperity. For too long, cross-border payments have been hampered by inefficiencies: high fees, slow settlement times, archaic technology, opaque exchange rates, and complex regulatory hurdles.
However, a transformative wave of innovation is now sweeping through the financial industry, fundamentally reshaping how individuals and businesses send and receive money internationally.
Facilitating this critical shift, particularly within Africa, demands a concerted effort involving shared intelligence, collaboration, technology, and collective responsibility. Public-private partnerships (PPPs) are emerging as a pivotal mechanism to accelerate the development and adoption of more efficient, secure, and inclusive cross-border payment solutions. By leveraging the distinct strengths of both government and the private sector, PPPs can unlock unprecedented opportunities in Nigeria and across the African continent.
The urgent need for seamless cross-border payments in Africa was a central theme at the 2025 Regtech Africa Conference and Awards in Lagos, aptly titled: “Unlocking Africa’s Cross Border Payments, Trade and Investment Opportunities through Public Private Partnerships.”
The imperative of collaboration
OPENING the conference, Chairman of the Organising Committee for RegTech Africa, Cyril Okoroigwe, underscored the transformative potential that collective action can unlock. “Africa stands on the brink of a new era,” he stated, “one where fragmented systems give way to integrated ecosystems, and where collaboration becomes the catalyst for prosperity.”
He emphasised the critical need for innovation and regulation to evolve in tandem, for African nations to collaborate beyond their borders, and for inclusive financial systems to be built on a foundation of trust, transparency, and technology.
RegTech Africa Chief Technical Officer, Blessing Obiyomi, stressed the importance of driving the integration of innovative digital solutions to facilitate seamless cross-border payments and unlock tradable investment opportunities across Africa.
Obiyomi, whose leadership has been instrumental in aligning stakeholders—regulators, fintech innovators, and public-private sector partners for the conference, said the forum strategically ensures that the conference serves as a dynamic platform for actionable insights and sustainable collaboration.
Deputy Governor, Economic Policy, Central Bank of Nigeria (CBN), Muhammad Sani Abdullahi, represented by Director of Statistics, Dr Usman Okpanachi, lamented Africa’s persistently low contribution to global Gross Domestic Product (GDP). Despite boasting nearly 20 per cent of the world’s population, Africa’s share of global GDP remains below three per cent. As of 2024, Africa’s combined GDP stood at approximately $2.8 trillion, less than that of Germany alone ($4.9 trillion).
He highlighted that 32 of the 44 countries identified by the United Nations as Least Developed Countries (LDCs) are in Africa, with sub-Saharan Africa experiencing higher poverty levels than any other region.
Abdullahi attributed Africa’s precarious economic position to several factors, including an over-reliance on commodities, which makes African economies susceptible to price fluctuations and perpetuates their role as suppliers of raw materials with minimal value addition. Another significant impediment is the lack of connectivity between African economies, with estimates suggesting that only 13-16 per cent of trade in Africa is intra-African. While progress has been made in reducing tariffs, cross-border trade infrastructure deficiencies continue to hinder commerce between African nations.
“In terms of cross-border payments, trade, and investments, Africa continues to face significant challenges, necessitating strategic engagements to fully realize Africa’s cross-border payments, trade, and investment potential through public-private partnerships,” he asserted.
Emphasising the importance of PPPs in democratising cross-border payments, Abdullahi noted that persistent challenges such as high transaction costs, regulatory fragmentation, and geopolitical complexities have acted as disincentives. He posited that leveraging partnerships and technology, fostering sustainable financial ecosystems through technological advancements, and utilizing data-driven insights for remittances, trade, and growth will unlock significant opportunities for Africa’s transformation.
“PPPs have emerged as a powerful tool for addressing complex economic challenges,” Abdullahi explained. “By combining the strengths of governments, private sector players, and technology innovators, PPPs can bridge gaps in infrastructure, governance, and service delivery. In the context of cross-border payments and trade, PPPs offer a unique opportunity to harmonize regulatory frameworks, modernize payment systems, and create seamless pathways for investment.”
Leveraging technology for sustenance
THE CBN Deputy Governor stressed that technology is the great enabler of our time. From blockchain to AI, He said technological solutions are transforming business conduct, risk management, and service delivery. These innovations are particularly relevant for Africa, where traditional financial infrastructure is often lacking.
The African cross-border payments market is projected to experience significant growth, fuelled by the continent’s accelerating digital transformation. Key drivers include increasing internet penetration, the proliferation of remittance and cross-border payment start-ups, and favourable regulatory developments. Market projections suggest a value of $180 billion by 2030, with McKinsey anticipating a 152 per cent increase in African e-payments between 2020 and 2025.
According to him, in 2022, the African Union (AU) and Afreximbank took a bold step by launching the Pan African Payment and Settlement System (PAPSS) to revolutionize cross-border payments and boost intra-African trade. PAPSS is fully operational in the six countries of the West African Monetary Zone (WAMZ), facilitating daily transactions for traders, SMEs, and individuals. Notably, in Nigeria alone, the value of transactions settled on PAPSS for Nigerian participants increased significantly from ₦2.80 billion in 2023 to ₦14.72 billion.
The power of data-driven insights
THE CBN chief further submitted that a data-driven approach is pivotal to unlocking Africa’s cross-border payments, trade, and investment opportunities.
He said this approach will empower policymakers to make informed and aligned decisions based on accurate and timely data. In 2023, remittance flows from the estimated 40 million Africans residing abroad reached approximately $100.1 billion globally, with sub-Saharan Africa receiving an estimated $56 billion (World Bank, 2024).
Mobile money has demonstrated a transformative impact on the African economy, with substantial growth in transactions facilitating intra-African trade, particularly for SMEs, and generating significant economic value. Data from the Global System for Mobile Communications Association (GSMA) revealed a $600 billion contribution to the GDP of countries offering mobile money services over the decade ending in 2022.
Further, he said intra-African trade experienced a 7.2 per cent growth in 2023, reaching a value of approximately $192 billion, indicative of its increasing contribution to Africa’s overall trade, which rose to 15.0 per cent in 2023 from 13.6 per cent in 2022 (Afrexim, 2024).
Looking ahead, the CBN Deputy Governor urged governments to create an enabling environment for private sector investment while ensuring the equitable distribution of growth benefits. He challenged the private sector to innovate with purpose, developing solutions that address the needs of the poor and marginalised.
Technical Advisor to the President on Economic and Financial Inclusion, Dr Nurudeen Abubakar Zauro, acknowledged that the current state of intra-African trade remains relatively low compared to other regions, historically hindered by factors such as small, fragmented national markets, low industrialisation, poor infrastructure, and weak governance. Intra-African trade constituted approximately 13 per cent of Africa’s international trade in 2022, a stark contrast to intra-European trade (around 70 per cent) and intra-Asian trade (around 60 per cent).
Referencing an ODI report, he noted that while intra-African trade is currently estimated at just 18 per cent of total African trade, comprehensive national reforms combined with the African Continental Free Trade Area (AfCFTA) could increase the median merchandise trade flow between African countries by 53 per cent.
The cornerstone of financial integrity
THE Nigerian Financial Intelligence Unit (NFIU) underscored Africa’s pivotal moment in its development journey, with cross-border payments and trade systems rapidly evolving, and the AfCFTA poised to transform intra-African trade. NFIU Senior Director, Dr Muhammad Jiya acknowledged that fragmented payment systems, regulatory silos, high costs, and vulnerabilities to Illicit Financial Flows (IFFs) continue to hamper progress.
He emphasised that Africa must align its regulatory and compliance ecosystems through strong, risk-informed partnerships, asserting that effective PPPs are essential to building secure, efficient, and trusted cross-border financial infrastructure. As Africa becomes more connected, he stated, “We must address shared risks, from trade-based financial crimes to the misuse of digital assets and platforms. But we must also seize new opportunities: digital currencies, payment platforms, e-commerce, and youth-driven tech innovation are reshaping the financial ecosystem. PPPs help us proactively manage these dual dynamics—threat and opportunity.”
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