Cross-border payments play a major role in supporting African trade, remittances, and overall economic development. The World Bank reports that remittances to Africa reached about $92.2 billion in 2024, and in 2025, the broader cross-border payments market is valued at roughly $329 billion. Forecasts suggest it could grow to nearly $1 trillion in 10 years, supported by advances in financial technology, wider use of mobile money and the growing intra-African commerce. Mobile money systems form a key part of this expansion as global mobile money platforms processed approximately $837 billion in 2022, with Africa accounting for about 66 percent of that activity. This highlights the continent’s strong adoption of digital financial services and their importance in enabling fast, low-cost payments.
As one of the layers of financial transfers, the movement of data across borders is becoming increasingly important. Cross-border data transfers support Africa’s digital economy by enabling online trade, digital services, and participation in both regional and global markets. As governments and businesses adopt more data-driven technologies, the ability to share personal and commercial data securely across borders has emerged as a significant issue and ensuring efficient data transfer is essential for economic integration and the growth of digital services.
Data flows as infrastructure for digital finance
Data flows enable financial institutions to verify identities, conduct compliance checks, detect fraud, and maintain transaction integrity across borders. For mobile money providers and fintech firms, data sharing provides faster settlement processes and real-time processing of transactions. For customers, this means reduced transfer times and greater transparency in transaction tracking. Reliable data movement is thus a technical requirement for scaling financial inclusion initiatives and for integrating local payment systems with global networks.
Policy and regulatory considerations
As financial activities increasingly rely on digital infrastructure, regulators are under growing pressure to ensure both consumer protection and system integrity. Many African countries have responded by drafting or updating national data protection frameworks to keep pace with technological change and align with international standards such as the European Union’s General Data Protection Regulation (GDPR). Countries like Kenya, Nigeria, South Africa, and Ghana have implemented or revised laws governing personal data collection, processing, and transfer, aiming to create an environment of trust for digital commerce and financial services. Despite these efforts, variations between national regulatory regimes still present obstacles to seamless cross-border data flows. Differences in definitions of personal data, consent requirements, and data transfer conditions can complicate cross-border operations for regional businesses and financial institutions. This regulatory fragmentation also increases compliance costs and may discourage smaller fintech firms from expanding beyond their domestic markets.
To address these challenges, regional and continental initiatives are emerging to promote policy harmonisation. The African Continental Free Trade Area (AfCFTA) Protocol on Digital Trade, currently under negotiation, seeks to establish common rules for digital trade, including provisions on data flow, cybersecurity, and consumer protection. Similarly, the African Union’s Convention on Cybersecurity and Personal Data Protection, commonly known as the Malabo Convention provides a framework for member states to strengthen privacy laws, enhance cybersecurity cooperation, and promote responsible data handling practices. Together, these initiatives aim to foster regulatory coherence and enable the free, secure movement of data across African borders. At the heart of these efforts is the search for balance: ensuring that data privacy and security remain robust while enabling the economic potential of open and trusted data flows. Policymakers are increasingly focusing on how to protect citizens’ digital rights without hindering innovation or regional economic integration. As cross-border payments and digital services expand, this balance will continue to shape the evolution of Africa’s digital economy.
Economic implications
The integration of payment systems and data ecosystems contributes to broader economic objectives such as market efficiency, transparency, and financial inclusion. Businesses can trade more easily across borders when payments and data move seamlessly. For individuals, increased remittance efficiency can support household income stability, savings, and investment. For governments, digital data from cross-border financial flows can improve macroeconomic monitoring and enable evidence-based policy planning.
As Africa’s digital economy continues to expand, the interaction between financial transfers and data governance is expected to deepen. Effective frameworks for cross-border data sharing will likely influence how financial innovation unfolds across the continent. Collaboration among governments, financial institutions, and technology companies will be essential to ensure interoperability, security, and trust across borders.
Chuma Akana is a privacy law expert and a technology law and policy advocate. He is the Founder of Innovation and Tech Lawyers Network. He is a regular speaker and writer on fintech, AI, emerging technologies, and global privacy laws. Chuma is a Tech, Law and Security Program Fellow at the American University, Washington College of Law. He can be reached via c.akana@chestterlaw.com, and is on Linkedin at www.linkedin.com/in/chuma-akana
