Destination Digital: Spotlight On Sub-Saharan Africa's Prospects

Innovations in digital payments are driving the Sub-Saharan region’s prospects for economic growth.

- Aida Diarra

As seen around the world, investment into digital transformation is paving the way for growth across the Central Europe, Middle East, and Africa (CEMEA) region – a trend reflected in the increasing share of consumers and retail merchants making transactions online.

In tandem, prospects for new businesses are encouraging, especially in Sub-Saharan Africa (SSA): while start-ups across CEMEA are seeing triple-digit growth rates for investment, the figures for SSA are particularly strong, with investment up 285% to US$2,1 million and deals up 26% to 392 in number in the last year, according to Visa Business and Economic Insights and analysis of data from Apptopia, Magnitt State of Startup Funding - 2022 Emerging Venture Markets Report.

How has the digital transformation seen around the world supported current and future growth in SSA? Acceptance of new forms of digital payments is key, businesses say. In the 2021 Visa Back to Business Study, three-quarters of small businesses indicated that accepting digital payments was essential to their growth, with 90% reporting that pivoting to ecommerce – which relies on digital acceptance – had helped them survive the pandemic.

If there’s going to be a digital payments revolution, it cannot be limited to large businesses. In solving for this segment, we need to address the complexity, drive lower costs and innovate to create more frictionless ways for SMEs to begin accepting payments.

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