In the vibrant markets of Lagos and the innovation hubs of Cape Town, a digital transformation is reshaping the continent’s economic future. Digital Public Infrastructure (DPI)—secure systems for payments, identities, and data exchange—is making seamless cross-border business a reality. With the African Continental Free Trade Area (AfCFTA) driving trade growth, startups are pioneering apps that eliminate payment hurdles and identity barriers. A comprehensive Co-Develop survey highlights why 2025 could mark a pivotal year for frictionless commerce, empowering traders from bustling urban centers to remote villages.
DPI: The Engine Behind Continental Trade Growth
The continent’s digital economy is on an upward trajectory, expected to hit $180 billion by 2025, fueled largely by fintech advancements in DPI. These foundational elements include verifiable digital IDs, real-time payment networks, and standardized data-sharing frameworks that dismantle outdated obstacles such as excessive documentation and elevated fees. Organizations like the World Bank and African Union advocate for DPI to enhance financial access and reduce trade costs, with potential to elevate intra-continental trade from around $70 billion in recent years toward multi-trillion-dollar scales by 2030.
Despite progress, adoption lags: approximately 53.6% of businesses currently utilize digital payments, constrained by affordability, connectivity issues, and security worries. Secure mobile applications address these by offering encrypted transactions and instant identity checks. Far from mere tools, they open doors to international opportunities, allowing artisans to export goods across regions without currency exchange complications or fraud exposure. This shift is particularly vital in informal sectors, where digital integration can unlock significant economic value.
Real-world examples abound. A trader in a busy West African market can now receive payments from East African buyers instantaneously, bypassing traditional banking delays. Similarly, suppliers in southern regions benefit from verified contracts that build trust without physical meetings. These capabilities align with broader goals of economic integration, fostering environments where small-scale operations compete on equal footing with larger entities.
Co-Develop Survey: Insights from Everyday Users
Timed with the upcoming Global DPI Summit 2025 in Cape Town, the Co-Develop survey—carried out by Ipsos in Ethiopia, Kenya, Nigeria, South Africa, Tanzania, and Uganda—captures grounded perspectives on DPI’s impact. Surveying more than 5,000 urban residents, it finds that 70% consider secure digital payments and identities essential for launching and expanding ventures. Notably, 65% believe these technologies would ease entry for small-scale operators, and 55% point to social media platforms as key enablers for regional sales.
The report stresses readiness among users, urging infrastructure to build lasting confidence. In areas with high digital banking penetration—reaching 89% in some markets—the focus shifts to informal economies, such as local convenience stores, where DPI could generate billions in additional activity. This aligns with AfCFTA’s push for compatible systems, setting the stage for widespread adoption in the coming year.
Further breakdown reveals regional nuances. In high-density urban zones, respondents prioritize speed and cost savings, while in emerging markets, reliability against outages takes precedence. Overall, the data signals a demand for inclusive solutions that cater to diverse operational scales, from street vendors to mid-sized exporters.
Leading Fintech Innovators: Stitch’s Payment Revolution
The startup scene, contributing 40% of continental fintech earnings and ranked 52nd worldwide, thrives on practical innovations. Cape Town’s Stitch, supported by $52 million in investments, delivers tools like LinkPay and PayOS for tailored payment experiences. These serve everyone from online marketplaces to neighborhood retailers, ensuring secure cross-border processing. Plans for 2025 include linking with the Pan-African Payment and Settlement System (PAPSS), which could reduce fees by up to 70% and support sectors like farming and manufacturing.
Stitch’s approach emphasizes customization, allowing businesses to integrate payments seamlessly into their workflows. This flexibility proves invaluable for exporters dealing with multiple currencies and regulations. By prioritizing encryption and real-time monitoring, the platform mitigates risks that once deterred regional dealings.
Complementing this is Yoco, which equips over 150,000 enterprises with versatile card processing that functions both online and offline. Transforming phones into point-of-sale devices, it suits mobile traders expanding beyond local boundaries. Representatives describe their mission as constructing the foundation for a unified digital marketplace, directly tackling survey-identified issues like settlement delays and scam prevention.
Biometric Identity: iiDENTIFii’s Verification Edge
Identity challenges hinder many transactions, especially where formal documentation is scarce, leading to losses in high-value agreements. Johannesburg-based iiDENTIFii, recognized by Bloomberg as a standout innovator for 2025, employs quick selfie scans for authentication. It cross-references with official records without retaining personal information, serving institutions like the continent’s biggest bank for millions of verifications each year.
With $15 million raised from investors including Arise, the technology responds to 60% of survey participants seeking simplified compliance for international opportunities. Integration with digital wallets allows freelancers and casual workers to engage globally with confidence. Expansion plans for 2025 involve broader continental collaboration under AfCFTA, aiming to standardize identities and contribute to projected economic gains exceeding $29 trillion by mid-century.
The process is straightforward yet robust: a user captures a photo, the system analyzes facial features against databases, and approval follows in moments. This efficiency reduces onboarding time from days to seconds, encouraging participation from underserved groups and fostering inclusive growth.
Cross-Border Enablers: Klasha and Rising Stars
Traditional cross-border transfers suffer from slowdowns and reliance on dominant currencies, but new solutions are emerging. Klasha, operating from Lagos and Cape Town, handles exchanges in over 120 currencies across seven countries. Having managed 140 million transactions, it lowers expenses by half through virtual accounts and developer interfaces, appealing to online sellers. Backed by American Express Ventures, it’s targeting retail growth where social platforms account for 30% of transactions.
Other ventures include Street Wallet, which provides QR code accessories for informal sellers and secured $350,000 for scaling. Tata-iMali introduces blockchain-based wallets with stablecoin support for rapid, low-fee operations in local shops. These align with the need for accessible DPI, especially since 80% of jobs stem from small and medium enterprises. As PAPSS expands to 19 nations and over 150 financial institutions, additional players like TurnStay—focusing on travel payments with $2 million funding—are reducing global transfer costs significantly.
Klasha’s model supports multicurrency wallets, enabling recipients to hold funds in preferred forms without conversion losses. This proves essential for importers managing fluctuating rates, stabilizing cash flows and encouraging sustained trade relationships.
Overcoming Obstacles for Sustainable Progress
Momentum builds, but issues like inconsistent connectivity in outlying areas, fragmented rules, and cybersecurity risks remain. Survey results show 40% concerned about privacy violations, highlighting encryption’s importance. Data protection laws, similar to South Africa’s POPIA, require adherence, though some companies address this reactively. Collaborations, such as Mastercard’s efforts in Ethiopia, and projects like TLIP for digitized logistics, are closing these divides.
Young innovators drive solutions forward. With a demographic where 70% are under 30, platforms like Borderless facilitate investment flows from overseas communities, handling $500,000 in deals since last year. Inspirations from global digital residency programs encourage access to distant markets, urging focus on emerging tech skills to maintain competitiveness among over 600 leading ventures.
Addressing connectivity involves hybrid models that store transactions locally during outages, syncing later. Regulatory harmony through AfCFTA working groups promises streamlined compliance, reducing duplication for operators in multiple jurisdictions.
2025: Era of Seamless Continental Commerce
The Co-Develop findings serve as a roadmap, showing how secure DPI applications are erasing divides. Innovators are steering toward a $180 billion digital landscape, with harmonized protocols under AfCFTA facilitating instant exchanges and verifications. Envision an artisan in one region settling with a supplier in another without intermediaries, or an exporter confirming partners remotely—all powered by reliable technology.
This evolution extends beyond transactions; it builds ecosystems where creativity and entrepreneurship flourish. From agricultural cooperatives linking directly with urban distributors to service providers reaching international clients, the possibilities expand daily. The emphasis on security ensures participation grows sustainably, guarding against setbacks that could erode gains.
In this era, the continent’s strength emerges from its adaptive, technology-embracing communities. By investing in DPI, the foundation solidifies for enduring prosperity, where economic barriers dissolve, and opportunities multiply for all involved. The journey ahead promises not just growth, but a redefinition of what’s possible in trade and collaboration.