The study explored various aspects of B2B payments, including the adoption of electronic bank transfers, payment automation, and invoice processing speed, shedding light on the reasons behind this dominance.
The “Exploring the State of B2B Payments in Africa” report is based on the insights of over 1,200 professionals from Kenya, Nigeria, South Africa, and Ghana. Notably, South Africa emerged as the frontrunner in electronic bank transfers, with 49.1 per cent of respondents favouring this method to pay vendors. Kenya followed closely at 31.9 per cent, while Nigeria and Ghana reported 48.5 per cent and 34 per cent, respectively.
Kenya’s dominance in payment automation is evident, with an impressive 83.4 per cent of Kenyan professionals indicating that their payment systems are either semi-automated or fully automated.
Nigeria closely followed at 79.9 per cent, with South Africa at 71.69 per cent and Ghana at 67.23 per cent. Additionally, in terms of invoice processing speed, South Africa held a slight lead, with 39.93 per cent stating that invoices are typically processed within a day or less. Nigeria was not far behind, with 39.74 per cent reporting the same efficiency.
One of the notable findings from the report is the importance of security in choosing B2B payment software. Across all countries surveyed, security ranked as the most critical feature for respondents, with 35.89 per cent selecting it as their top priority.
This sentiment was consistent in Kenya (39.9 per cent), Ghana (36 per cent), South Africa (35.6 per cent), and Nigeria (32.2 per cent), underscoring companies’ emphasis on safeguarding their financial data.
Functionality, ease of use, multiple payment options, and speed were other preferred features, highlighting a preference for flexibility and efficiency in B2B transactions.
Commenting on the report, Yele Oyekola, CEO and co-founder of Duplo, expressed optimism about the future of B2B payments in Africa. Oyekola emphasized the dynamic growth and innovation ahead, signalling a new era of opportunities and expansion for the continent’s business ecosystem. As businesses increasingly adopt digital solutions, it signifies a shift in workplace dynamics, empowering finance professionals to add more value to their organizations.
The significance of Africa’s B2B payment sector cannot be understated, with the World Bank estimating the continent’s share of the global B2B payment opportunity at $1.5 trillion. Despite this tremendous potential, there are still issues that need to be addressed to facilitate seamless money flow between businesses in Africa.