Digital payments, IDs drive African business growth

SECURE digital payment and identification systems could unlock a new wave of entrepreneurship and cross-border commerce in Africa, according to new survey findings released by global nonprofit CoDevelop ahead of the Global DPI Summit 2025 in Cape Town.

The Ipsos survey, conducted across six of the continent’s largest markets, Ethiopia, Kenya, Nigeria, South Africa, Tanzania and Uganda, found that digital public infrastructure (DPI) could significantly reduce barriers to starting and scaling businesses.

Forty-two per cent of respondents said they would be more likely to open a business or expand an existing one if they could accept secure digital payments, while a third cited digital identity verification for buyers and sellers as a factor encouraging them to enter the market.

The data highlights growing demand for foundational digital systems that can increase trust in commerce and expand access to regional markets.

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More than half of current and aspiring business owners said digital payment platforms would encourage them to buy or sell outside their local area, while 48 per cent pointed to digital verification tools that reduce fraud risk.

Respondents also identified social media commerce as a major catalyst for crossborder trade, with 55 per cent saying the ability to buy and sell through social platforms would encourage expansion.

“As African countries accelerate digital transformation, trust is emerging as the most valuable currency,” said CV Madhukar, Chief Executive Officer of Co-Develop.

“People are willing to share their data, but only if they understand what is being shared and why. The challenge is not whether to build digital systems, but how to build them as public infrastructure that works for everyone.” A striking 82 per cent of respondents said they would share personal data on digital platforms if there are clear safeguards, transparency and user control.

Fraud protection, control over personal information and clear rules on data usage ranked highest among features that would increase confidence.

The survey suggests that digital infrastructure could also shape labour markets. Eighty-two per cent of participants believe digital services can help people secure new or better jobs, reinforcing the argument that DPI could widen access to income-earning opportunities, particularly for youths and small businesses.

African governments are increasingly positioning DPI as a driver of inclusive growth. The World Bank, African Union and several G20 economies have called for broader adoption of shared digital infrastructure to deepen financial access and reduce trade frictions.

Co-Develop, which invests in DPI systems globally, says more than 50 countries are actively pursuing national digital identification, payments and data-sharing frameworks.

“Countries are making decisions today that will define digital participation for decades,” Madhukar said.

“People are ready, now the infrastructure has to live up to the trust they are offering.” The survey polled more than 5,000 online adults between October 3 and October 18.

Individual market results were weighted equally to build a combined index reflecting urban online populations.