According to a recent study, South Africa is leading the way in the digitization of business-to-business (B2B) payments on the African continent. The study, conducted by business payment platform Duplo, found that electronic transfers accounted for more than 82% of the $994 billion of B2B transactions in South Africa.

The report analyzed data from 1,218 contributors across Nigeria, Ghana, South Africa, and Kenya, representing various companies of different sizes, ages, revenues, and sectors. It revealed that South Africa also outperformed other countries in the speed of processing invoices, with 39.9% of respondents reporting that it typically takes a day or less to process invoices, slightly ahead of Nigeria's 39.7%.

In terms of payment automation, Kenya was at the forefront, with 83.4% of respondents stating that their payment system was either semi-automated or fully automated. Nigeria followed with 79.9%, South Africa with 71.7%, and Ghana with 67.2%.

The study indicates that despite facing challenges, the future of B2B payments in Africa looks promising, with significant potential for growth and innovation. Digitization offers the opportunity to automate accounts payable and receivable processes, reducing payment delays, improving cash flow, and driving business growth across the continent.

South Africa has been actively working on digitalizing its payment systems, with initiatives like the launch of Payshap, an interbank and real-time digital payments service created through collaboration between Bankserv (a clearing house owned by South African commercial banks) and the South Africa Reserve Bank, further promoting digital payment adoption in the country.

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