CROSS-BORDER PAYMENT HURDLES SLOW AFRICAN FIRMS’ EXPANSION

Cross-border payment challenges and fragmented financial regulations are slowing the expansion of African businesses into new markets, industry leaders have said.

The concerns were raised at the inaugural “The Borderless Experience” organised by Condia in Lagos, where business and technology leaders discussed the challenges facing companies seeking to expand across Africa.

Divisional Chief Executive Officer, Payment Processing and Switching at Interswitch, Akeem Lawal, said about $100 billion in cross-border payments moved out of Nigeria through unregulated channels over the past year.

He said the figure showed the scale of the opportunity for financial technology companies to develop better payment solutions that can support businesses operating across African markets.

Lawal noted that Nigerian payment companies had developed sophisticated systems locally but now needed to extend those capabilities to other African countries.

However, the Chief Executive Officer of Zest Payments, Kemi Manuel, said technology alone would not solve the problem. She identified fragmented financial regulations across African countries as one of the biggest barriers to regional expansion.

According to Manuel, fintech companies often face different licensing requirements when attempting to offer similar services in multiple countries, making it difficult to scale seamlessly.

She pointed to early discussions among regulators about creating a shared licence that could eventually cover several African markets, saying such a framework could reduce regulatory barriers.

The event also highlighted challenges faced by entrepreneurs in securing licences, banking partners and skilled workers as they expand beyond their home markets.

Industry stakeholders said addressing these barriers would be critical to unlocking the potential of the African Continental Free Trade Area and creating a more integrated African market.

The organisers said the Borderless Experience would continue as a platform for founders, operators and industry experts to discuss practical solutions for building businesses that can operate successfully across African markets.