Africa is on the brink of a digital transformation that is set to revolutionize its economic landscape. According to a recent report by Genesis Analytics, commissioned by Mastercard, the digital payments economy in Africa is projected to soar to $1.5 trillion by the year 2030. This growth is primarily driven by rapid increases in internet penetration and financial inclusion, which are among the fastest-growing catalysts for digital payments across the continent.
The report highlights a compound annual growth rate of 20% in internet penetration, alongside a 6% annual expansion in financial inclusion. These trends signify a robust pivot towards digital transactions, with both businesses and consumers increasingly adopting contactless payment solutions. This shift is expected to significantly enhance economic participation and financial access throughout the region.
Dimitrios Dosis, President for Eastern Europe, the Middle East, and Africa at Mastercard, emphasized the continent’s potential, stating, “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.” Mastercard plans to sustain investments in Africa, capitalizing on digital growth and fostering public-private partnerships to spur financial health and economic progress.
Supporting this optimistic outlook, Mark Elliott, Division President for Africa at Mastercard, noted that “With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and technologies to support the continent’s continued digital transformation.”
The report also underscores the importance of seamless cross-border transactions, highlighting them as critical for Africa’s economic mobility. In 2023 alone, remittances to Africa amounted to approximately $100 billion, accounting for around 6% of the continent’s GDP. Mastercard acknowledges the significant role these funds play in local economies and emphasizes the need for convenient and affordable remittance methods. The firm believes that companies offering these services will be pivotal in meeting the continent’s needs, thereby bolstering the fintech sector.
In East Africa, Mastercard’s strategic partnerships with local banks like Access Bank and Equity Bank have facilitated smoother cross-border payments, illustrating the impact of collaboration in driving digital financial solutions.
As Africa embarks on this transformative journey, the digital payments sector stands as a beacon of opportunity, poised to empower economies and uplift communities. With strategic investments and continued innovation, Africa’s rise as a digital powerhouse seems not only possible but imminent.
