The plumbing behind the apps: Why Africa’s next fintech leap belongs to national switches

While venture capital has focused on building consumer-facing mobile banking apps and digital storefronts, the real engine of Africa's digital economy lies in the invisible infrastructure known as national payment switches. In an interview, Hanae Ben Driss, Managing Director of Morocco's Switch Al-Maghrib, argues that these national switches are crucial for achieving sovereignty and interoperability across the continent.

Ben Driss contends that the existing fragmentation of payment systems is not a failure, but rather the first step towards building a truly African financial ecosystem. Without local infrastructure, countries are vulnerable to external shocks and the influence of multinational banking schemes. She emphasizes that sovereignty does not necessitate each country developing systems independently, but rather retaining control over their management.

Morocco's national switch, established over two decades ago, serves as a prime example of this approach. By enabling domestic transactions, Morocco reduced reliance on international payment schemes, paving the way for greater financial autonomy. Today, similar initiatives exist in countries like Nigeria, Ghana, Rwanda, and Angola. However, to enable cross-border interoperability, a new association of African national switches is needed to coordinate technical standards and facilitate seamless transactions.