A new report by Duplo, a prominent business payment platform for African businesses, reveals that Nigeria is trailing South Africa and Kenya in the development of key Business-to-Business (B2B) payment processes across the African continent. The “Exploring the State of B2B Payments in Africa” report gathered insights from over 1,200 professionals in Kenya, Nigeria, South Africa, and Ghana.

According to the report, South Africa leads the way in the adoption of electronic bank transfers, with 49.1 percent of respondents choosing it as their preferred way to pay vendors. Nigeria closely follows at 48.5 percent, while Ghana and Kenya stand at 34 percent and 31.9 percent, respectively, in terms of electronic bank transfer preference.

On the front of payment automation, Kenya emerges as the leader, with an impressive 83.4 percent of Kenyan professionals stating that their payment systems were either semi-automated or fully automated. Nigeria follows closely at 79.9 percent, while South Africa and Ghana recorded 71.69 percent and 67.23 percent, respectively, in terms of payment automation adoption.

Regarding the speed of processing invoices, South Africa holds a slight advantage, with 39.93 percent of respondents stating that it typically takes a day or less to process invoices. Nigeria is close behind at 39.74 percent, indicating similar efficiency in invoice processing.

The report also sheds light on Africa’s B2B payment sector, emphasizing its significant but largely untapped potential. The continent’s share of the global B2B payment opportunity stands at an impressive $1.5 trillion, according to the World Bank. However, many businesses in Africa face challenges with payment delays and other issues that negatively impact cash flow and hinder growth. In recent years, digital payment solutions have eased some of these challenges, but there remain several issues that need to be addressed to facilitate smoother money flow between businesses in Africa.

One of the critical aspects businesses consider when choosing B2B payment software is security, with 35.89 percent of respondents ranking it as the most critical feature. This preference for secure payment systems was consistent across all surveyed countries, emphasizing the importance companies attach to safeguarding their financial data.

Functionality and ease of use ranked second among the key features valued by businesses, followed by multiple payment options and speed of transactions. Pricing and scalability were of relatively lower priority, indicating a focus on functionality and immediate needs.

Yele Oyekola, CEO, and co-founder of Duplo, expressed optimism about the future of B2B payments in Africa, highlighting the potential for dynamic growth and innovation. He emphasized the opportunity to automate accounts payable and receivable and transform other aspects of the B2B payments process, which could significantly reduce payment delays, enhance cash flow, and drive growth for businesses across the continent.

Oyekola further noted that the increased adoption of digital solutions represents a shift in workplace dynamics and positions finance professionals to add more value to their organizations. Duplo aims to play a major role in realizing these opportunities and delivering technology solutions to support business growth in Africa.

The report underscores the immense potential for Africa’s B2B payment sector and emphasizes the importance of digital solutions in fostering economic growth and financial efficiency across the continent.