Leaders Sought Lower Fees for African Cross-Border Payments
Financial firms propose opening settlement access to non-bank providers to reduce transaction costs.
Updated on Oct. 12, 2026 in Financial Services
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Business leaders in Abidjan, Côte d'Ivoire, recommended regulatory reforms on July 22, 2026, to address fragmentation in African payment systems. The move seeks to bypass banking intermediaries and lower high transaction costs for cross-border financial services.
Why it matters
Current settlement structures force non-bank providers to rely on banking intermediaries, creating liquidity constraints and keeping costs for users significantly above international targets. These reforms aim to improve margins and accessibility for fintech operators as regional payment volume grows.
African cross-border payments reached $329 billion in 2025 and are projected to hit $1 trillion by 2035. Representatives from 11 institutions participated in the forum to address these market barriers.
The players
Francophone Africa Leaders Forum
A group of financial institution representatives and industry experts focused on regional market infrastructure.
The details
Non-bank payment providers currently face operational hurdles because settlement facilities are largely restricted to traditional banks. By expanding direct access to these accounts, the proposed framework intends to eliminate the intermediaries that drive up foreign exchange and processing fees. This change would shift competition within the payments market by enabling fintech firms to offer more efficient cross-border services.
Timeline
2025: African cross-border payments totaled $329 billion.
February 2026: Private sector consultations began.
July 22, 2026: The Francophone Africa Leaders Forum on Cross-Border Payments occurred in Abidjan.
2035: Projected date for African cross-border payments to reach $1 trillion.
Market Landscape
The proposed reforms are an attempt to align regional fee structures with the UN Sustainable Development Goal target of 3% for remittance costs. The initiative follows a pattern of regulatory harmonization efforts currently unfolding across various African monetary zones to modernize financial infrastructure.
Fintech operators should monitor the ongoing development of the Regulatory Harmonization Framework as it could expand direct access to local settlement accounts. These policy shifts will likely change procurement and banking partner requirements for those managing regional liquidity.
The takeaway
The drive toward harmonized regulation is designed to mitigate the liquidity constraints currently faced by non-bank payment providers. Operators should track the development of the Regulatory Harmonization Framework for Cross-Border Payment Services in Africa as a signal for future market entry requirements.
Further reading
For broader trends in regional transaction infrastructure, see the latest updates in Financial Services.
Source note: This article includes information reported by Businessday NG.
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