Africas cross-border business-to-business (B2B) payments landscape is in line for a transformative shift, predicts a new report by Duplo , a provider of payment solutions for African businesses. These findings suggest evolving global trade dynamics and the advent of innovative payment technologies will catalyse substantial growth in cross-border B2B transactions.
The report, titled The State of Cross-Border B2B Payments in Africa and its Impact on Trade , underscores the immense potential of intra-African trade. Despite an estimated value of USD 193 B in 2022, accounting for 13.8% of total African trade, the report suggests this figure significantly understates the true scale of commerce due to prevalent informal and underreported transactions.
A striking revelation is that 40% of cross-border trade payments between East and West African countries are conducted in cash, with underreporting rates ranging from 12 to 76%.
This cash-heavy ecosystem, coupled with the dominance of traditional banking channels for large-value transactions, is characterised by exorbitant fees and protracted processing times.
These realities underscore the critical need for B2B cross-border payment solutions that can accurately capture and efficiently facilitate these transactions, emphasises the report.
