The report, titled “The State of Cross-Border B2B Payments in Africa and its Impact on Trade,” is the third in an annual series of B2B payment reports from Duplo, and it examines a wide range of issues, including key drivers of intra- and extra-African trade, the current state of cross-border B2B payments in Africa, and the outlook for the future.

The report reveals that the value of intra-African trade reached an estimated $193 billion in 2022, accounting for 13.8 percent of total African trade.

This figure, while significant, likely understates the true scale of intra-African commerce, as a significant proportion of cross-border trade is informal and underreported.

According to the report, 40 percent of cross-border trade payments between East and West African countries are made in cash, with underreporting ranging from 12 to 76 percent.

At the same time, traditional banking channels still dominate large-value formal cross-border B2B payments, despite the high transaction fees and lengthy processing times.

These realities underscore the critical need for B2B cross-border payment solutions that can accurately capture and efficiently facilitate these transactions.

Interoperability between different payment systems is also a major challenge, especially when it comes to cross-border transactions.

According to the report, out of 32 instant payment systems spread across Africa, less than half are able to work together seamlessly.

This is why initiatives like the Pan-African Payment and Settlement System (PAPSS), although still in its early stages, are crucial for streamlining and formalizing trade across the continent.

When it comes to extra-African trade, Africa’s share of global trade value has remained stagnant at 3%.

However, new global trends such as the emergence of various Asian countries as economic powerhouses, the new multi-polar world order fronted by the US and China, and other trends point to a shift in global trade patterns.

These developments present opportunities for effective B2B cross-border payment solutions that will not only support more trade across and outside the continent but also enhance transparency, improve efficiency, reduce transaction costs, and offer other benefits.

Commenting on the report, Yele Oyekola, CEO and co-founder of Duplo, said,

“As businesses navigate new opportunities and challenges that come with changing global trade patterns, there is an increasing need for efficient and cost-effective cross-border payment solutions. Our report highlights the critical role technology can play in overcoming traditional banking limitations. We believe that by embracing these new technologies, businesses can unlock the full potential of intra- and extra-African trade, driving economic growth across the continent.”

The logistical infrastructure for global expansion is now readily available, and the incentives are compelling.

However, as businesses tap into this opportunity, they often face challenges in managing their international finances and transactions.

Some of these problems include expensive foreign transaction fees, slow money transfers, the need to manage multiple foreign bank accounts in each market and the absence of a consolidated view of their global finances.

Graph, a Canadian business banking and spend management platform, is trying to solve these problems with what it tags the finance OS (operating system) for businesses.

To achieve its aim, Graph supports two sets of financial actions: cross-border banking and expense management via corporate card issuance and management.

Graph currently offers three solutions: global payouts, multiple currency accounts, and corporate dollar cards. Its global payout solution currently allows you to make bulk payments in three currencies: US dollar (USD), euro (EUR), and pounds (GBP).

Some of the more obvious use cases include payments to international suppliers and employees and remittance of local collections to foreign head office accounts.

Opening and maintaining business accounts in foreign countries is a complex process. Getting a business bank account in the U.S., for instance, requires the venture to be registered in the U.S.

On top of that, there are also strict regulations, lengthy application processes, and physical presence requirements in some cases, which create hurdles for foreign companies seeking a foothold in the U.S. market.

This not only delays their expansion plans but also limits their access to efficient financial tools like USD-denominated accounts, crucial for conducting business on a global scale.

This challenge is further compounded by the complexities of managing finances across different markets using accounts from multiple banks.

There’s the hassle of reconciling transactions across these accounts and the difficulty of getting a clear view of global cash flow due to fragmented information, all of which lead to a sub-optimal financial management process.

Graph peels away these layers of complexity by providing a central hub for creating and managing multiple currency accounts.

Enterprises looking to expand globally or those whose models rely on international transactions (importers and exporters, for instance) can request foreign bank accounts denominated in specific currencies such as USD, EUR and GBP (the last two are still in the works) and manage them under one roof.

This gives businesses quick and easy access to standard business accounts in multiple currencies, removes the need for separate logins and empowers businesses with consolidated real-time insights into their global finances. Plus, Graph’s business accounts boast swift settlement and cheaper transaction fees.

The procedure for getting these business accounts is simple. For instance, for the USD account, which is currently available, interested companies are required to submit a few documents to Graph.

Graph then leverages its partner network to issue a standard business bank account the same day, which can be managed directly on Graph.

Corporate dollar cards complete Graph’s current product suite. The idea behind them is to enable businesses to create Visa dollar debit cards for corporate expenses and manage them in one place.

So, a business can issue its marketing department a card with an advertising budget, for instance, track the expenses it incurs and close, freeze or unfreeze the card.

This simplifies expense management and provides a single source of truth for the company’s expenses.

The vision for Graph came from the founders’ unsatisfactory experiences with international banking solutions and conversations with other entrepreneurs.

They found several options lacking in reliability and then set out to create the solution they wished was available to them.

“We wanted to build a reliable platform for streamlining international finance, based on the challenges we were facing and countless conversations with other founders. The idea was to nail down the reliability and convenience part when it comes to moving money abroad, so businesses can focus on their core operations without getting bogged down in complex international banking procedures,” Paul Akubo, Graph co-founder and CEO, noted.

“Graph streamlines the entire process, from account opening to currency conversions and international payments, all within a secure and user-friendly platform,” Paul added.

Going by customer reviews, Graph is succeeding with its plan. Speaking about the platform’s value, Tunde Adewole, CEO of Bridgecard, said: “As a startup with global operations, Graph’s simplified global payments product has been a lifesaver for us. The traditional hassles of cross-border transactions are now a thing of the past.”

“The platform’s robust security measures and quick processing times have instilled confidence in our financial transactions. It’s not just a product; it’s a strategic asset for any startup aiming to expand its footprint internationally,” Adewole concluded.

So far, Graph, which has been in business for barely a year with much of that time spent in private beta, has hit the ground running. It has onboarded 100+ businesses and recorded over $100 million in processed transactions while getting into the Techstars Toronto Accelerator Program last year.

As for what’s on the horizon, Ebube Udochukwu, Product and Operations Lead at Graph, says the company is focused on adding more currencies and payout destinations. Expanding into Kenya and Ghana is also on the cards for the highly ambitious startup.

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