How Africa’s fragmented payment systems are holding back cross-border trade

Experts at the 2026 Moonshot by TechCabal conference emphasized the need for African countries to harmonise regulations, connect payment systems, and invest in shared financial infrastructure to facilitate faster, cheaper cross-border trade. Panelists Tola Onayemi, Tatiana Ndlovu, and Iheakachi Nwabueze highlighted that current fragmented regulations and disconnected payment systems raise costs and complexity for businesses operating across Africa.

In 2024, cross-border trade between African countries amounted to $220.3 billion, a 12.4% increase from the previous year, according to Afreximbank’s African Trade Report 2025. However, businesses still face challenges in navigating different currencies, payment systems, and regulatory requirements, making transactions more cumbersome and expensive.

Onayemi noted that African payment systems have largely been designed with individual countries in mind rather than a connected continental market, leading to significant disparities between domestic and cross-border payments. Using Nigeria as an example, he pointed out that domestic transactions can be completed within seconds, but this efficiency often dissipates when transactions cross national borders.

He advocated for connecting existing payment infrastructure rather than building separate systems, arguing that this shared approach could reduce costs and duplication. Onayemi also stressed the importance of establishing a shared infrastructure that allows financial institutions and payment providers to connect their services while maintaining customer service.

He cited Nigeria’s domestic payment infrastructure as a model for how providers could offer services through a common system to lower costs.

Regulatory fragmentation was identified as another major barrier to expansion. Ndlovu explained that a financial technology company looking to operate in Nigeria, Kenya, and Ghana might need separate licences and local funds in each market to facilitate payments. This requirement to maintain funds in multiple countries complicates transaction settlement and balance reconciliation.

She stressed that fragmented corporate and administrative requirements hinder businesses from expanding across African markets. For merchants, the challenges extend beyond accepting payments to receiving funds, settling transactions, and arranging logistics for cross-border deliveries.

Ndlovu stressed that solutions must also meet customers' expectations, ensuring they have the same confidence in cross-border transactions as they do in their domestic markets. Customers should have confidence in the product price, supplier trustworthiness, delivery timing, and recourse mechanisms in case of transaction issues. She emphasized that the same empathy design principles used for local products should be applied to cross-border transactions as well.