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Sustainable investing, commonly referred to as socially responsible investing (SRI) or ethical investing, is a type of investment strategy that considers environmental, social, and governance (ESG) considerations in addition to financial rewards. While making money for investors, it seeks to advance sustainable development, slow down climate change, and deal with other environmental issues. The idea of sustainable investing, its rising popularity, and the numerous strategies investors can use to balance their financial objectives with environmental concerns are all covered in this article.




Understanding sustainable investing is actively finding assets that have a beneficial impact on the environment and society. It also means incorporating ESG factors into investment decisions. ESG considerations often include norms for labor practices, diversity and inclusion, pollution, resource use, and ethical governance practices. Investors can promote change while potentially attaining competitive financial returns by matching their investments with these elements.



In recent years, sustainable investing has gained popularity as a result of rising environmental and social concern as well as rising desire for ethical investment options. Investors have the chance to match their investment portfolios to their principles and make a positive impact on a more sustainable future. Investors should, however, perform full due diligence and comprehend the potential risks and opportunities related to sustainable investments.

Global sustainable investment assets hit $31 trillion in 2020, up 34% from 2016, according to the Global Sustainable Investment Alliance. This expansion is being fueled by a number of factors, such as increased awareness of altering societal expectations, rising regulatory pressure, and climatic change.

Promoting sustainable development and ensuring a more equal and responsible use of resources are the two main objectives of sustainable investing. This strategy recognizes that businesses have an impact on society and the environment, and that investors may promote change by supporting enterprises that use sustainable business practices.



There are various ways to engage in sustainable investment. It’s important to note that these methods are not mutually exclusive and that investors can combine various tactics depending on their objectives, risk tolerance, and values. To make sure that the companies they choose actually follow sustainable practices, sustainable investors should also take transparency, industry standards, and external certifications into account when making investment decisions. These are a few of them:

  1. Integration of ESG: In this strategy, the conventional investment analysis and decision-making process is integrated with environmental, social, and governance (ESG) considerations. Investors factor in the potential effects of companies’ ESG practices on their financial performance when making investment decisions.
  2. Thematic Investment: Focusing on particular sustainability issues or industries is known as thematic investing. Investors contribute their funds to businesses that operate in industries including water management, sustainable agriculture, and renewable energy. Investors can directly support businesses that advance sustainable development using this strategy.
  3. Impact Investing: This type of investment seeks to produce both financial rewards and measurable good social or environmental impact. Those who invest actively look for opportunities that are consistent with their principles and that aim to solve certain social or environmental problems. The effect may be assessed using indicators like the decrease in carbon emissions, the creation of jobs, or the eradication of poverty.
  4. Finest-in-class Approach: Using this strategy, investors direct their funds to businesses that have the finest sustainability records in their particular industries. This strategy entails choosing businesses who, in comparison to their competitors, have good ESG standards. Investors are able to assist sector sustainability leaders and motivate others to perform better.
  5. Shareholder Advocacy: Engaging actively with businesses as shareholders to influence their sustainability policies is referred to as shareholder advocacy. Investors use their power to voice their concerns, put forward ideas, and advocate for changes in areas like executive remuneration, diversity and inclusion, and the prevention of climate change. Investors advocate for internal change to encourage businesses to adopt more sustainable practices. using sustainable methods.
  6. Negative Screening: With negative screening, investors stay away from enterprises that are thought to be damaging or at odds with their sustainability goals. Examples might include banning businesses involved in the production of fossil fuels, tobacco, weapons, or human rights abuses. By rejecting businesses or industries that they deem to be immoral, negative screening enables investors to match their investments with their ideals.
  7. Exclusionary Screening: This includes excluding businesses or industries that are thought to have a detrimental effect on the environment or the welfare of society. Investors can avoid investing in industries like fossil fuels, tobacco, weapons, or businesses that engage in immoral business practices by using this strategy.
  8. Positive Screening: Positive screening entails proactively looking for businesses that have exceptional ESG performance. Investors might look at for businesses that place a high priority on sustainable technology innovation, labor rights, environmental protection, or renewable energy.



Sustainable investment has a number of advantages for both investors and society at large. Some major benefits include:

  1. Long-term Returns: According to studies, businesses that do well in terms of sustainability typically outperform their peers in the long run. Investors can identify businesses that are better able to manage risks and seize opportunities by taking environmental, social, and governance (ESG) considerations into account, potentially resulting in higher financial returns.
  2. Risk management: Analyzing ESG possibilities and hazards as part of sustainable investing can help investors reduce possible risks. For instance, businesses with subpar waste management procedures or lax labor laws may be subject to regulatory fines, reputational harm, or disturbances in the supply chain. Investors can recognize and steer clear of such risks by including sustainability factors.
  3. Better Corporate Behavior: By directing funds to sustainable investments, investors can persuade businesses to embrace more ethical behavior. Shareholder activism and involvement put pressure on businesses to enhance their ESG performance, resulting in favorable improvements in areas including reducing greenhouse gas emissions, promoting diversity and inclusion, and doing business ethically. As a result, society gains and a more sustainable future may be possible.
  4. Market Resilience: Sustainable investing takes the transition to a more sustainable economy into account. Businesses that prioritize environmental and social issues are likely to be more adaptable to legislative changes, consumer preferences, and market movements as governments, regulators, and consumers place an increasing emphasis on sustainability. By contributing Investors in these businesses might set themselves up to profit from these developments.
  5. Positive Impact: By incorporating sustainable investing into their portfolios, investors may match their holdings with their own personal values and make a positive difference. Investors can support environmentally and socially responsible business practices by investing in businesses that place a high priority on ESG problems. A more inclusive and equal society, the advancement of sustainable technologies, and positive social change can all result from this.
  6. Bringing in Stakeholders: Recent years have seen a substantial uptick in sustainable investing, and stakeholders frequently hold highly favorable views of businesses that exhibit great ESG performance. Businesses are expected to address environmental and social challenges by stakeholders such as investors, consumers, employees, and others. Investors can draw stakeholders that appreciate ethical business practices by supporting sustainable businesses.
  7. Regulatory and Policy Support: Governments and regulators are putting rules in place to encourage or mandate the disclosure of ESG information as they become more aware of the relevance of sustainable investing. This regulatory assistance improves openness and assists investors in making wise judgments based on solid information.



Although sustainable investment has many advantages, there are also difficulties and factors that investors need to take into account. Some major difficulties include:

  1. Lack of Standardization: There isn’t currently a benchmark for defining and evaluating sustainability performance that is widely accepted. Investors find it difficult to compare and uniformly assess companies’ sustainability activities due to the lack of standardization. Additionally, it raises the possibility of greenwashing, in which businesses exaggerate their commitment to sustainability.
  2. Data Availability and Quality: Access to trustworthy and solid data on environmental, social, and governance variables may be restricted. Investors may find it challenging to appropriately evaluate a company’s sustainability performance if they do not disclose complete ESG data. Additionally, it might be difficult to make wise investment decisions due to the inconsistent and varying quality of the data that is provided.
  3. Financial Performance Trade-offs: The possibility of long-term financial outperformance through sustainable investing, some sustainability Short-term underperformance of investments is possible. Businesses that place a high priority on sustainability may need to make upfront expenditures in areas like supply chain optimization or renewable energy, which can have an impact on their short-term profitability. These investments could, however, help create long-term wealth.
  4. Limited Investment Opportunities: Compared to conventional investment possibilities, the universe of sustainable investment opportunities may be more constrained. Finding a balanced portfolio may be difficult for investors who are concentrated in particular sustainable themes or businesses. However, as demand rises, there are now more possibilities for sustainable investments.
  5. Integration Complexity: Integrating sustainability factors into investment processes can be challenging. In order to successfully study and evaluate ESG variables, specialist knowledge and resources are needed. Additionally, it might be difficult to strike a balance between financial goals and aspirations for sustainability, as there might be conflicts between the two.
  6. Belief that Sustainable Investing Sacrifices Financial Returns: Some investors may still believe that Sustainable Investing Sacrifices Financial Returns. There is a misconception that investing sustainably entails sacrificing financial performance, despite evidence to the contrary. In order to change this view, it is essential to educate investors about the potential financial rewards of sustainable investing.
  7. Systemic Issues: Corporate governance, societal injustice, and climate change are just a few examples of systemic problems that sustainable investing seeks to address. Individual investors cannot overcome these issues on their own; instead, businesses, governments, and civic society as a whole must work together to find solutions. For systemic change to have a real impact, investors must become involved and advocate for it.

When pursuing their goals, investors must take these issues into account and successfully traverse them. strategies for sustainable investing. Investors can handle these issues by consulting experts, making use of available tools, and keeping up with changing best practices.



As investors increasingly understand the significance of balancing profitability with environmental concerns, sustainable investing has gained major traction. Investors can create financial rewards while actively promoting a more sustainable and inclusive future by incorporating ESG issues into their investing decisions. Sustainable investing is anticipated to have a significant role in accelerating global transformation as demand for it grows.

Sustainable investing stands as an important and promising strategy that aims to balance financial success with environmental concerns. Resource depletion, resource change, and other environmental problems are becoming increasingly serious worldwide difficulties. Investors are becoming increasingly aware of the need to switch to more sustainable methods. Individuals and institutions can have a good impact on the environment while also pursuing financial gains by incorporating environmental, social, and governance (ESG) concerns into their investment decisions.

Finally, sustainable investing is therefore essential for reducing the harmful effects of economic activity on the environment. society and the environment. It denotes a change toward a more ethical and responsible method of generating income, whereby business interests and environmental concerns may coexist. Investors may support a more resilient and sustainable economy that benefits both current and future generations by taking into account governance, social, and environmental aspects. Sustainable investing has the potential to replace conventional investing as knowledge and understanding of it increase, resulting in a better future for the economy and the environment.

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The Legal and Regulatory Framework for Real Estate Investment




The Legal and Regulatory Framework for Real Estate Investment

Nigeria’s growing population, urbanization, and rising demand for residential and commercial real estate have made real estate investment there an alluring prospect. However, it’s crucial to comprehend the legal and regulatory environment controlling the real estate industry in Nigeria before making any investments. The goal of this article is to present a thorough examination of Nigeria’s real estate investment laws and regulations: “The Legal and Regulatory Framework for Real Estate Investment.”

The Meaning of Real Estate and Real Estate Investment

Real Property

A tangible property made up of land, any buildings, and any natural resources is referred to as real estate. This include commercial properties like office buildings and retail stores, industrial properties like factories and warehouses, residential properties like homes and apartments, and vacant land. True Natural resources like water, minerals, and agriculture are often included in real estate. A tangible asset, real estate can be purchased, sold, rented, or developed for a variety of uses. A few examples of the variables that affect real estate value are location, demand, state of the economy, and property quality.

Investment in Real Estate

Buying, holding, managing, renting, or selling real estate with the intention of making a profit is known as real estate investment. There are various ways to accomplish this, including:

  • Rental Properties: To generate rental revenue, investors buy properties and lease them to tenants.
  • Property Flipping: When an investor purchases a property, they make improvements or renovations before selling it for a profit.
  • Real Estate Investment Trusts (REITs): Investors can buy shares in REITs, which are companies that own, operate, or finance income-generating real estate across a range of property sectors.
  • Real Estate Development: After buying land, investors can turn it into residential or commercial properties, which they can then either rent or sell.

 Investing in real estate has various possible advantages, such as:

  • Potential for Long-Term Capital Appreciation: Historically, real estate values have tended to rise over time, offering the possibility of long-term capital appreciation.
  • Rental Income: Having rental properties might result in a reliable source of income from rentals.
  • Diversification: Using real estate in an investing portfolio as a technique for diversification may lower total risk.
  • Tax Benefits: Investors in real estate may be able to take advantage of a number of tax breaks, including 1031 exchanges, mortgage interest deductions, and depreciation deductions.

Nonetheless, investing in real estate includes risks and difficulties such as changes in the real estate market, complicated property management, difficulties with funding and liquidity, and legal and regulatory issues.

When approaching real estate investing with careful consideration of market conditions, financing choices, and risk management, it can be a feasible strategy for wealth development, income generation, and portfolio diversification. A comprehensive understanding of market trends, property value, and property management techniques is frequently necessary for successful real estate investment.

Laws Guiding Real Estate Investment in Nigeria

Nigerian real estate is subject to a number of laws, rules, and government organizations. The following are some of the main legal frameworks that govern real estate investment in Nigeria:

  • Land Use Act: A key component of legislation governing land ownership and use is the Land Use Act of 1978. and apply within Nigeria. It outlines the processes for obtaining and transferring land rights and gives the governor of each state the authority to oversee and administer all urban land within that jurisdiction. The Act also governs the issuance of Certificates of Occupancy (C of O) and the rights of occupancy, as well as the acquisition of land for real estate development.
  • Nigerian Urban and Regional Planning Law: Under this law, planning-related activities in Nigeria are governed. It offers guidelines pertaining to development permits, zoning, construction codes, and land use. Real estate investment projects must adhere to local and regional planning regulations in order to guarantee that the appropriate permits are secured for development and land usage.
  • Land Registration Laws: Land registration is a requirement in Nigeria. is regulated by a number of regulations, such as the Land Registration Act and the Land Instruments Registration Law. These laws provide a framework for creating and defending property rights by regulating the registration of land titles, interests, and transactions. For real estate investors to safeguard their ownership claims and safeguard their real estate holdings, proper land registration is essential.
  • Property And Conveyancing Rules: In Nigeria, these rules control who owns, transfers, and conveys property. They include instructions for buying, selling, and transferring real estate, as well as the legal prerequisites for carrying out real estate transactions and registering real estate conveyances.
  • Tenancy Laws: Rental agreements and landlord-tenant relations are governed by tenancy laws in Nigeria. They outline the responsibilities and rights of both landlords and tenants, the processes for reviewing rent, and procedures for resolving tenancy agreement problems.
  • Regulatory Agencies: The Nigerian real estate industry is governed by a number of regulatory bodies, which include the Federal Housing Authority, the Nigerian Investment Promotion Commission (NIPC), the Nigerian Urban and Regional Planning Commission, the Federal Ministry of Power, Works and Housing, and the Real Estate Developers Association of Nigeria (REDAN). These organizations offer industry standards, license requirements, and regulatory rules for building, investing, and developing real estate.

To guarantee compliance and reduce the risks connected with real estate investments, it is crucial for Nigerian real estate investors to become knowledgeable about these rules and regulations, consult with legal counsel, and interact with the appropriate regulatory bodies. Furthermore, regional or state-specific cultures and practices may have an impact on real estate. investment, therefore careful research and local knowledge are necessary for investment success in Nigeria’s real estate market.

Regulatory Framework For Real Estate In Investment in Nigeria

  • The Nigerian Constitution and Land Tenure System: The legal basis for land tenure and ownership in the nation is provided by the Constitution. It acknowledges that land is owned by the government and that people and businesses can use and occupy it under different types of tenures, such certificates of occupancy or leaseholds. Real estate investors must be aware of the land tenure laws that are in effect in a certain area.
  • Land Ownership and Acquisition: Under the Land Use Act of 1978, the state governors of each of Nigeria’s states are the legal owners of all land. Investors need to understand the procedure for land acquisition, which frequently entails buying land from private sellers or local governments or obtaining a Certificate of Occupancy (C of O) from the state government. Purchasing land for real estate investment requires careful consideration and appropriate legal papers.
  • Titles and Registration: In order to ensure the security of real estate investments in Nigeria, it is essential to get correct legal titles and register property. The procedure entails carrying out a title search, confirming legitimacy, and transferring ownership by signing formal documents like conveyance or assignment deeds. Investors who want to protect their investment and make sure that registration criteria are met should collaborate with licensed legal experts.
  • Approvals for Real Estate Development: Before starting any real estate development projects in Nigeria, investors need to get the required permissions and approvals. This comprises obtaining building approvals, environmental impact assessments, and development permits from the appropriate local government agencies and regulatory organizations. Fines, demolition orders, or delays in projects are possible outcomes of noncompliance.
  • Real Estate Investment Vehicles: Real estate investors in Nigeria have access to a variety of investment vehicles, such as joint ventures, real estate development firms, and real estate investment trusts (REITs). Making wise investment selections requires having a thorough understanding of the regulatory requirements, tax ramifications, and legal frameworks of various investment vehicles.
  • Lease Agreements And Tenancy Rules: Knowledge of tenancy rules and regulations is essential for investors who are involved in leasing or renting. For example, requirements on notice periods, eviction procedures, rent payment, and lease agreements are provided under the Lagos lease Law of 2011. Respecting these laws helps keep the landlord-tenant relationship positive by defending the rights of both parties.
  • Taxes and Real Estate Investment: In Nigeria, real estate investments are liable to a number of tax duties, such as stamp duties, value-added tax (VAT), capital gains tax, and property taxes. In addition to ensuring compliance, knowing the tax laws and consulting with tax experts can assist investors optimize profits while lowering their tax obligations.
  • Regulatory Agencies and Associations: The real estate industry in Nigeria is governed by a number of government agencies and associations. These include State Town Planning Agencies, the Federal Housing Authority, the Federal Ministry of Works and Housing, and regulatory organizations like the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and the Real Estate Developers Association of Nigeria (REDAN). Getting acquainted with These groups and their functions can guarantee industry standards are followed and offer insightful information about the sector.


Analyzing the legal and regulatory framework for real estate investment in Nigeria is essential for any investor looking to capitalize on the opportunities in the growing real estate sector. By understanding the constitution, land tenure system, acquisition processes, development approvals, investment structures, tenancy laws, taxation, and relevant regulatory bodies, investors can make informed decisions, mitigate risks, and navigate the legal landscape successfully. Seeking legal advice from professionals experienced in Nigerian real estate law is highly recommended to ensure compliance and protect investments in this dynamic sector. [invest]

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Crypto and Blockchain: Shaping the Future of Payments in Africa




Cryptocurrency and Blockchain: Shaping the Future of Payments in Africa

Cryptocurrency and blockchain technology are revolutionizing how payments and financial transactions are conducted worldwide, and Africa is no exception: “Crypto & Blockchain: Shaping the Future of Payments in Africa.”

With Africa’s limited traditional banking infrastructure, millions of people are excluded from financial services, leading to slow business and economic growth.

However, with the high rate of cryptocurrency adoption in many African countries, noticeable changes are taking place. People initially excluded from the financial system participate in digital transactions, making cross-border payments and investments, ultimately changing their lives and positively impacting the economy.

This article discusses different ways cryptocurrency and blockchain technology are shaping the future of payments in Africa.

How Cryptocurrency and Blockchain are Shaping the Future of Payments in Africa

Financial Inclusion and Access to Capital

Financial exclusion, that is, lack of access to capital and other financial services, is one of the major problems facing the African payment infrastructure. The World Bank reported in 2014 that over 350 million African adults had no bank account.

That number has decreased in recent years due to the success of mobile money programs. But a recent BPC fintech report shows there’s a lot more to be done, as it reported that 57% of Africans do not have access to any kind of bank account, including mobile money accounts.

This is where cryptocurrency and blockchain stepped in and are already contributing massively to the payment revolution in Africa. Cryptocurrency became popular in Africa in the heat of the COVID-19 period, recording an adoption rate of 1200% between 2020 and 2021.

Individuals initially excluded from the traditional financial systems are now actively participating in the crypto market with just their phone and internet connection. The availability of crypto ATMs and over-the-counter (OTC) markets where you can trade cryptocurrency and receive cash has made it possible for people in underserved communities to access financial services.

Cross-Border Payments

African countries engage massively in international trade within themselves and with other continents. Many small businesses in Africa export goods in different quantities and import them to resell or for production. However, traditional cross-border payments can be expensive and slow due to the fragmented financial landscape of the continent and the use of different currencies.

According to the World Bank, the average cost of sending $200 was 6.2% in Q4 2022, with mobile money being the cheapest at 4.5%. That’s between $9 and $12 in transfer fees for a payment of just $200. And it could be more, especially if the sender uses a traditional bank (11.8%) or a money transfer operator (5.4%). The cost could be quite unbearable when the exchange rate and preferred transfer speed are factored in.

Cryptocurrencies, such as bitcoin, ETH, BNB, and stablecoins, are facilitating borderless and cost-effective international money transfers, reducing the fees and time involved. Transferring cryptocurrency from one wallet to another is one of the cheapest ways to make cross-border payments or remittances, and transactions are completed in 24 hours or less. For example, the average cost of sending Bitcoin to another wallet is $4.05, while Ethereum costs $0.73 per transaction.

Store of Value

The inflation rate in most African countries is skyrocketing daily, eroding the value of their currencies and making imports and even internal purchases expensive. For example, in Nigeria, the dollar price in the parallel market went from N736 in January to N1300 in October 2023. That shows a 76.6% increase in the dollar’s value within ten months.

According to Business Insider Africa, many African countries are experiencing a prolonged period of high inflation. In the list, Zimbabwe stands top with an inflation rate of 101%. Others are Serra Leone (44.81%), Ghana (43.1%), Egypt (36.5%) and Ethiopia (28.8%). Nigeria, the largest African country, also made the list with an inflation rate of 24.08%.

The rising inflation in many African countries has led individuals and businesses to look for a reliable way to save money without losing value. Cryptocurrencies, especially stablecoins, have proven to be a good store of value and a reliable alternative for financial transactions.

Integration with Mobile Payments

Many Africans use mobile phones for payments and transactions, and cryptocurrencies can integrate seamlessly with mobile payment platforms, making it easy for people to transact with them.

Mobile payment platforms like Google Pay, BitPesa, Blockonomics, PayPal, and more allow users to make payments in cryptocurrencies for purchases on digital platforms.

People bypass many unnecessary fees by transacting in cryptocurrencies, especially when making purchases on international platforms. Many crypto-integrated mobile payment apps also allow users to save, invest, and perform other financial services with their smartphones.


Remittances are a significant source of income for many African families. Africans working abroad love sending money to their families at home, either for their upkeep or investments.

The World Bank’s Migration and Development Brief shows how remittances grew in Sub-Saharan Africa by 6.1% in 2022, totaling $53 billion. Many countries had significant growth in their remittances, with Tanzania (25%), Rwanda (21%), and Uganda (17%) being the top three. Nigeria accounted for 38% of the total remittance inflows to the region despite having a growth rate of only 3.3%.

Many factors contributed to this remittance growth in Africa, including the low cost of cryptocurrency transactions and mobile money payments.


The adoption of cryptocurrency and blockchain technology is rapidly reshaping the African payment system, creating a future of massive financial inclusion, efficiency, economic development, and empowerment.

The advantages of these assets are clear, as individuals, businesses, and governments can benefit massively from them. Cryptocurrencies facilitate borderless and cost-effective cross-border payments, enable individuals and businesses to hedge against hyperinflation, and make mobile payments more efficient.

Despite already having significant success in Africa, its future impact is expected to be much more revolutionary. Cryptocurrency and blockchain technology will open new opportunities for investment and trade and pave the way for a brighter economic future across the African continent. See More!

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Challenges and Opportunities in African Payment Infrastructure




Challenges and Opportunities in African Payment Infrastructure

Africa is evolving massively in all areas, and the digital payment industry isn’t left out. Many digital payment systems have sprouted in the past and achieved tremendous success due to the enabling environment and the desire of Africans to join the formal financial system: “Challenges and Opportunities in African Payment Infrastructure.”

However, despite the success achieved, the African payment infrastructure still faces some challenges and has massive opportunities for growth. This article discusses these challenges and opportunities and how they affect individuals and businesses in the continent.

Challenges in African Payment Infrastructure

  • Low Financial Inclusion

One of the major challenges of the African payment infrastructure is the low degree of financial inclusion. Many Africans, especially those in rural communities, lack access to modern financial services.

According to The Fintech Times, 57% of the population of Africa, around 95 million people, do not have a traditional bank account. This shows how many people are excluded from the formal financial system, limiting the strength of the African payment infrastructure.

With banks situated only in the major cities of most African countries, the difficulty in penetrating rural areas with financial solutions increases, causing people and businesses in these areas to still rely heavily on cash transactions.

  • Cash Dominance

According to a 2017 United Nations report, about 90% of retail transactions in Sub-Saharan Africa are still cash-based. This means that cash still rules in Africa, which is risky due to the associated theft and fraud.

Furthermore, Africa’s reliance on cash is another reason behind the low degree of financial inclusion in the area. This cash dominance isn’t slowing down anytime soon because of the reluctance of the informal merchants, who form the majority, to deal with non-cash payment methods.

Handling and transporting cash can be expensive and logistically challenging, making digital payments more efficient and secure.

  • Limited Infrastructure

Infrastructural limitations are part of the key challenges in the African payment system. Individuals and businesses lack affordable access to physical infrastructure, such as ATMs and POS terminals, and digital infrastructure, such as the internet, leading to the low adoption rate of digital payment systems in most regions.

According to Statista, only 43.2% of Africans have access to the internet, leaving a huge percentage of people without access to the digital payment system.

The lack of infrastructure or its limitations greatly limits the successful expansion of the digital payment infrastructure in Africa, as people and businesses in rural and underbanked communities are completely excluded.

  • Regulatory Hurdles

Many African countries have strict regulatory policies affecting the payment infrastructure. Payment service providers often face challenges navigating these regulations when facilitating cross-border transactions, discouraging them from expanding their services to other African countries and denying many people access to the modern financial services they offer.

  • Security Concerns

Security is another key challenge in the African payment system, as some companies lack the resources to provide high-level customer data protection. Customers fear falling victim to online scams or having their personal data in the wrong hands.

Worse still, less than 50% of companies in Africa are well-equipped to handle a large-scale cyberattack. In fact, a 2021 African Cyberthreat Assessment Report by Interpol shows that more than 90% of African businesses were operating without necessary cyber security protocols.

This shows that security is one of the biggest reasons the African payment infrastructure has not expanded to catch up with what’s obtainable in Europe and America.

Opportunities in African Payment Infrastructure

  • Mobile Money Revolution

The success of mobile money services in some African countries like Kenya has led to its massive adoption in other African countries like Ghana and Nigeria. Mobile money is rapidly growing in the continent because of the difficulties people experience with traditional banking services and the increasing availability and affordability of technology.

With a total transaction value of over $800 billion in mobile money transactions, Africa tops the global mobile money usage chart.

The mobile money revolution presents a huge opportunity for developing the African payment infrastructure. Many previously unbanked individuals now have access to modern financial services, enabling them to access personal and business growth opportunities.

  • Growing Middle Class

According to the African Development Bank, the number of middle-class Africans has tripled since the late eighties, exceeding 313 million people, and is expected to reach 1.1 billion by 2060.

The growing number of middle-class Africans presents a great opportunity for the growth of the African payment infrastructure. This is because an increase in the middle class means an increase in the number of people with more disposable income who are more likely to adopt electronic payment methods.

  • Technological Development

As technologies evolve and new ones roll out, the payment system gets better and more widely adopted. Modern technologies like blockchain, AI, biometric authentication, etc., have led to the development of more efficient, accessible, and secure payment systems in Africa.

The African payment infrastructure has seen the development of digital payment solutions like mobile wallets, digital payment apps, and even contactless payment systems. This makes it easier for unbanked individuals to access financial services and reduce their dependence on cash.

  • Financial Inclusion Initiatives

Many African governments are creating conducive environments for digital payment systems to thrive. By creating financial inclusion initiatives that drive the fast adoption of digital payment systems, they facilitate the expansion and reach of these payment services to the unbanked areas.

Financial inclusion initiatives strengthen the African payment infrastructure, ensuring people initially excluded from the financial system are integrated. With more people accessing financial services like savings, investments, and more, the payment system expands and the economy benefits.

  • E-Commerce Growth

The growth of e-commerce in Africa creates opportunities for convenient and secure online transactions. According to Statista, e-commerce in Africa is projected to reach a market volume of $59.18 billion by 2027.

This massive growth in the volume of e-commerce transactions also results in a great volume of e-payments, further strengthening the African payment system.


The African payment infrastructure is faced with a myriad of challenges and opportunities. While key challenges such as low financial inclusion, cash dominance, regulatory complexity, and more persist, there are also many opportunities that, when harnessed, will reshape the financial ecosystem across the continent.

At Kora, our mission is to connect Africa to the world and connect the world to Africa via payments. For startups and businesses accepting money in and from Africa, we provide all the support you need to start, scale, and thrive on the continent. Visit to see all the ways you can grow with Kora [korahQ].

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