Africa cross -border Market value is expected to hit $ 1 trillion in 2035, but high transmission costs, slow transactions and inaccessibility prevent growth, says a new report.
With the title “Africa’s cross -border payment landscape”, Report was published by OUI Capital, a Lagos-based, Africa focused venture capital company. It revealed that the market was valued at $ 329 billion in 2025 and is estimated to register a composed annual growth rate (CAGR) of 12% to suffer $ 1 trillion in the coming decade.
An important market driver in recent years has been the increasing penetration of mobile money. Africa is now the world’s dominant region in mobile money and accounts for two -thirds of all transaction value in 2024, in accordance with to a GSMA report. The region also registered over 80 billion transactions last year, 75% of the global sum.
The report revealed that mobile money accounted for 30% of all cross -border payments in Africa south of Sahara 2022 and is expected to register 48% annual growth.
Digital innovations, including mobile money, Financial technologyand blockchainConverts transfers in Africa, the report noted. The region has the world’s highest transfer fees, which can be as high as 8% according to the World Bank. However, these innovations give them as low as 3%, which saves Africans billions annually.
“With every 1% reduction in transfer fees, African families save an estimated $ 6 billion per year, which emphasizes the huge economic effect of digital innovation in the transmission sector.”
Africa’s digital payment revolution
Cross -border payments involve several intermediaries, including local and foreign banks, all of which receive a fee, which results in high total costs for consumers. However, the report notes that disturbances in fintech eliminate these intermediaries and save Africans billions.
Blockchain-based cross-border rails have become the cheapest alternatives and are now used by millions in the entire region. Unlike traditional rails, Blockchain payments is peer-to-peer and with BSVImmediately and cheap. These payments are still the cheapest option, even with middlemen, for example Bitcoin wallets and off-frame solutions.
Blockchain technology “provides immediate transaction validation and cuts out intermediaries, reduces the transaction time to minutes and costs to 0-1% per transaction. Users usually finance their crypto wallets through bank transfers, mobile money or other options on the ramp,” the report noted.
In recent years, Africans have taken to stablecoinsthat offers the convenience and cost savings for digital assets without associated price volatility.
Mori Sylla, whose overdue network offers a Stablecoin-based payment network, explains: “Stablecoins solve several pain points in cross-border transactions. They are faster, cheaper and still connected to familiar systems such as bank accounts and mobile money wallets-but with a much better user experience.”
Despite the rapid growth, Africa’s cross -border market still faces some important challenges that inhibit its progress, the report noted. This includes the lack of an intra-African clearing and decommissioning system, with payments that are still dependent on the USD networks.
Regulating Uncertainty has also prevented the growth of financial technology. Digital assets and blockchain have been the most affected, as the sector remains the least regulated in the new payment space, limits its development and excludes millions of potential users.
Watch: Increase financial inclusion in Africa with BSV -Blockchain
https://www.youtube.com/watch?v=3oo8u8imwmc Title = “Youtube video player” Ramborder = “0” Allow = “Accelerometer; Autoplay; Clipboard writing; encrypted media; Gyroscope; Image-in-Bild; Web Dividend” Reference Policy = “Strict-Origin-When-Cross-Origin” Allowing Lorscreen = “>”
