Cross-border payments between China and Africa

China, a pivotal player in Africa’s export market, has emerged as the top single-country destination, absorbing 15% of African exports. The value of China-Africa trade has skyrocketed, surging from $11.67 billion in 2000 to $257.67 billion in 2022 and $282.1 billion in 2023. This benefits China and Africa, accounting for more than a third of the 40% of African exports directed towards Asia, which has solidified its position as Africa's primary trading partner.

Cross-border payments are not just a part of this flourishing relationship; they are the backbone facilitating the daily flow of economic transactions between Africa and China and driving economic growth. We created a white paper to provide more insight into the state of cross-border payment between China and Africa.

This whitepaper examines:

The current state of cross-border payments: Understand the existing framework and mechanisms driving trade between these regions.
Influencing factors: Discover the key elements shaping cross-border payments, from regulatory environments to economic policies.
Technological advancements: Explore how cutting-edge technologies revolutionise transactions and make cross-border payments faster.
Future trends and predictions: Gain insights into what the future holds for China-Africa trade and how you can stay ahead of the curve.

Africa's population has grown by nearly 25% over the past decade, accompanied by a digital revolution. African online shopping revenue witnessed 75% growth in just a fraction of that time, highlighting the continent's vast potential in the e-commerce sector, which is yet to be fully tapped.

Hundreds of Africa-focused fintech providers have surfaced over the last five years. Some hone in on invoicing, some focus on remittances, and some offer micro-loans to government workers. Jointly, their digital payment rails have enabled a swell of real-time cross-border transactions and a related uptick in manufactured goods imports, a significant portion of which originates in China.

As a natural extension of that purchasing spree, the world-leading Chinese apps, such as WeChat, Alipay, and others, have populated African mobile users' devices. Other Chinese-owned apps, like OPay and PalmPay, come preinstalled on popular brands of Android phones produced by the Chinese manufacturer Transsion. This placement allows Chinese investors to grow alternative digital banks in Africa, stepping in when domestic banks and local monetary systems falter, as evident during a temporary cash crunch in Nigeria in 2023.

This white paper discusses the development initiatives and charts the future potential of cross-border payments between Africa and China. It particularly highlights Klasha's innovative cross-border payment solutions that facilitate China-Africa trade.

To download the whitepaper and learn more, click here