Same-day deliveries and real-time tracking have transformed consumer expectations across the globe. But the real bottleneck in supply chains, particularly in Africa and other emerging markets, isn’t just about logistics; it’s the payment systems underpinning them.
By Rachael Akalia, senior marketing manager: commercial at Yellow Card
Despite significant advances in manufacturing, inventory management, and shipping technology, many supply chain transactions still depend on outdated financial infrastructure. This includes delayed settlements, high transaction fees, multiple intermediaries, and opaque processes – inefficiencies that ripple across the global trade ecosystem.
The Cost of Delay
When businesses place orders with overseas suppliers, payments often pass through a web of correspondent banks before reaching the intended recipient. According to the McKinsey Global Payments Report (October 2024) and the World Bank’s 2024 study, cross-border B2B payments typically take three to five business days to settle. In emerging markets, the wait can be even longer, especially over weekends and public holidays.
This lag isn’t merely inconvenient. It’s expensive. While transactions hang in limbo, working capital is frozen, and suppliers are left uncertain about cash flow. In dynamic industries, this kind of friction can mean the difference between meeting demand and losing business. Currency fluctuations during the wait can also impact final settlement values, compounding the risks faced by importers and exporters working on tight margins.
Why Instant Settlement Matters
Real-time settlement – the ability to send and receive payments instantly – offers a promising alternative. It removes unnecessary delays, reduces risk, and enhances transparency and trust among trading partners.
Instant payments improve inventory turnover and restocking and strengthen working capital management. Crucially, it gives businesses confidence: knowing that funds will arrive on time can transform buyer-supplier relationships and speed up deal-making across borders.
The African Challenge and Opportunity
According to the 2024 African Trade Report by the Africa Export-Import Bank, intra-African trade rose to 15% of total trade in 2023, up from 13.6% the previous year. While this is a step forward, it’s still far behind intra-regional trade in Asia (58%) and Europe (68%).
One major hurdle remains: limited access to efficient cross-border payment solutions.
Many African countries face fragmented and outdated financial systems that simply weren’t built for the pace and scale of modern commerce. Yet the appetite for growth is strong, both within Africa and from global businesses looking to connect with African suppliers.
Modernising payment infrastructure is key to unlocking this potential. With the right systems in place, businesses can bridge the gap between the old financial rails and the real-time demands of today’s markets.
A Faster, Smarter Future
Forward-looking companies are already investing in digital financial solutions that bypass legacy delays and empower instant, secure settlement across borders. These systems often leverage innovative technologies, such as blockchain and stable digital currencies, to move value quickly and cost-effectively, whether paying suppliers in Ghana, sourcing goods from Kenya, or managing invoices across the continent.
For supply chains to remain competitive in a global economy defined by speed, resilience, and adaptability, financial infrastructure must evolve alongside logistics. Instant settlement isn’t just a tech upgrade; it’s a strategic imperative.
The businesses that embrace faster, more transparent payment solutions will not only improve operational efficiency but also build stronger, more reliable partnerships and ultimately position themselves for growth in a rapidly changing world.