Kenya, Nigeria, South Africa, and Ghana are the leaders in key B2B payment: Report

NAIROBI, Kenya - A new report by Duplo, a business payment platform shows that Kenya is leading Africa in the development of key B2B payment processes, including the adoption of electronic bank transfers, speed of processing invoices, and payment automation.

The survey was carried out with more than 1,200 professionals, with 83.4 percent of Kenyans stating that their payment system was either semi-automated or fully automated.

Nigeria, South Africa, and Ghana trail Kenya in the report findings, recording  79.9, 71.69, and 67.23 percent are at least automated. 

However, when it came to the speed of processing invoices, South Africa has a slender lead, with 39.93 percent stating that it typically takes a day or less to process invoices compared with Nigeria’s 39.74 percent.

The rainbow nation also leads the way in electronic bank transfers, with 49.1 percent choosing it as their preferred way to pay vendors, followed by Nigeria (48.5 percent), Ghana (34 percent), and Kenya (31.9 percent). 

The report says that Africa’s B2B payment sector represents a significant, yet largely untapped opportunity.

This is partly due to the complexity and larger transaction volumes associated with B2B payments.

According to the World Bank, the continent’s share of the global B2B payment opportunity stands at $1.5 trillion.

The report further  states that "Despite this promising potential, many businesses grapple with considerable payment delays and other issues with their payment processes that negatively impact their cash flow and slow their growth.''

In recent years, digital payments solutions have eased many of these challenges but there remains a number of issues to be addressed in the journey of easing the flow of money between businesses in Africa.

Security ranked as the most critical feature across the board for respondents when choosing B2B payment software, with 35.89 percent selecting it as the feature they valued the most.

Across individual countries, security was also the top feature - Kenya (39.9 percent), Ghana (36 percent), South Africa (35.6 percent), and Nigeria (32.2 percent) - emphasizing the importance companies attach to safeguarding their financial data.

In 2022 Kenya lost over $ 360 million to cyber criminals.

Functionality and ease of use (17.6 percent), multiple payment options (13.5 percent) and speed (12.9 percent) follow, showing a preference for payment flexibility and quick transactions.

Pricing (11.5 percent) and scalability (8.2  ) are less prioritized, suggesting a focus on functionality and immediate needs.

Yele Oyekola, CEO and co-founder of Duplo pointed out that despite various challenges, the future of B2B payments in Africa is set for dynamic growth and innovation, signaling a new era of opportunities and expansion for the continent's business ecosystem.

"The opportunity to automate accounts payable and receivable and transform other aspects of the B2B payments process offers great potential to reduce payment delays, enhance cash flow, and drive growth for businesses across the continent.''

The expert adds that the increased adoption of digital solutions also implies a shift in workplace dynamics and positions finance professionals to add more value to their organizations.

"We are looking forward to playing a major role in the realization of these opportunities and the delivery of technology solutions to support growth for businesses in Africa.” 

GAROWE ONLINE