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A new report by Duplo, a provider of payment, spend and vendor management solutions for African businesses, has predicted that changing global trade patterns and the emergence of new payment solutions would drive significant growth in cross-border business-to-business (B2B) payments in Africa and unlock the full potential of intra- and extra-continental trade.
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The report titled, ‘The State of Cross-Border B2B Payments in Africa and its Impact on Trade’, is the third in a yearly series of B2B payment reports from Duplo.
It examines a wide range of issues, including key drivers of intra- and extra-African trade, the current state of cross-border B2B payments in Africa and the outlook for the future.
The report reveals that the value of intra-African trade reached an estimated $193 billion in 2022, accounting for 13.8 per cent of total African trade.The figure, while significant, likely understates the true scale of intra-African commerce as a significant proportion of cross-border trade is informal and underreported.
According to the report, 40 per cent of cross-border trade payments between East and West African countries are made in cash, with underreporting ranging from 12 to 76 per cent.
At the same time, traditional banking channels still dominate large-value formal cross-border B2B payments, despite the high transaction fees and lengthy processing times.
The realities, it said, underscore the critical need for B2B cross-border payment solutions that can accurately capture and efficiently facilitate transactions.
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