The African continent is poised for significant economic growth, with Nigeria set to become the most populous country by 2050. However, to achieve this potential, the region must overcome the barriers to cross-border payments that hinder trade and investment.

Dr. Austin Okpagu, Nigeria Country Director at Verto, emphasizes that a robust payment infrastructure, consistent policies, and effective governance are crucial to creating a thriving environment for businesses. The inability to seamlessly trade and move money across Africa not only hampers the growth of local companies but also drives global investors away, making Nigeria increasingly reliant on imports.

The current state of trade in Africa is concerning, with Nigeria increasingly dependent on imports from countries like China, while trade with other African nations continues to decline. To strengthen the country's position in the global market, deliberate actions are needed to address the root causes of cross-border payment challenges.

Verto, a fintech company, is tackling this issue head-on, processing payments in over 170 countries with offices in Nigeria, Kenya, South Africa, and the UK. However, more needs to be done to address the inconsistencies in policies across different political regimes, the lack of currency interoperability, and the burden of multiple taxes.

The Nigerian government has taken steps towards tax reforms, proposing a single tax agency to harmonize the current fragmented system. However, more efforts are required to create a unified tax system across the region, eliminating further taxation after paying taxes in one country.

The tech community must also come together to hold the government accountable for its actions and policies. A unified voice is essential to influencing policy and ensuring that proposed changes are thoroughly reviewed to prevent unintended consequences.

The adoption of a single currency within the region, similar to the Euro in Europe, could also facilitate seamless trade across African nations. The Pan-African Payments and Settlement System (PAPPS) is making progress towards enabling African countries to trade directly using their local currencies, reducing reliance on Dollar conversions.

By addressing the challenges of cross-border payments, African nations can unlock new avenues for trade and investment, positioning the continent as a formidable player in the global economy. The time for action is now, and collaborative efforts among governments, private sector stakeholders, and fintech innovators are essential to create a cohesive payment ecosystem.