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Saying that small and medium-sized enterprises (SMEs) are the backbone of economies in East Africa is an understatement. SMEs make up the largest part of all registered entities in nearly every industry and sector in most East African countries, averaging between 60% to 90%, including micro-enterprises. 
As the region continues to experience significant progress and development, the SME ecosystem plays a crucial role in creating employment opportunities, encouraging innovation and entrepreneurship, and diversifying economies. 
Similar: <a href="https://technext24.com/2024/08/07/network-international-launch-network-one/">Payment company, Network International launches improved&nbsp;payment platform, Network One in Nigeria</a> 
However, only a few of these SMEs will grow into larger-sized firms or expand their reach into markets beyond the area they operate. This is mainly due to the constraints they face that limit their ability to expand and scale their business, such as inadequate financing and access to investment and financial services and insufficient integration into international capital markets. 
Historically, the finance sector in East Africa has shown a preference for traditional banks, which have been restricted in terms of geographical reach and other factors. This has resulted in limited access to financial services for many merchants in the region, hindering economic growth and development. 
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 Doreen Lukandwa, Head, of Commercial Strategy at Onafriq
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But this is changing. 
The emergence of an increasingly robust digital payments infrastructure in East Africa presents an incredible opportunity for businesses to scale by opening up access to new markets in the region, across the continent, and around the globe. 
<h4 id="expanding-the-global-footprint-of-the-enterprise" class="wp-block-heading">Expanding the global footprint of the enterprise</h4> 
Africa accounts for&nbsp;<a href="https://www.gsma.com/sotir/wp-content/uploads/2023/04/GSMA-SOTIR-2023_Web.pdf" target="_blank" rel="noopener">70%</a>&nbsp;of the world’s $1 trillion in mobile money value, mainly due to the boom in digital instant payment solutions and inclusive interoperable payment systems across the continent. East Africa makes up the largest mobile money market on the continent, with transaction values worth&nbsp;<a href="https://www.gsma.com/sotir/wp-content/uploads/2023/04/GSMA-SOTIR-2023_Web.pdf" target="_blank" rel="noopener">$491 billion for 390 million registered accounts in 2022</a>. 
These booming, secure, efficient, and interconnected digital payment systems are transforming the business landscape by breaking down geographical barriers and broadening enterprises’ ability to collect and make payments to and from anywhere in the world. 
Trailblazing fintech firms are revolutionising the digital payments space and helping enterprises solve their revenue collection and payment challenges, reducing operational costs and leaving them free to focus on operational efficiency. 
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 <img loading="lazy" decoding="async" width="800" height="400" src="https://technext24.com/wp-content/uploads/2023/09/Digital-payments-Nigeria.jpg" alt="Building Nigeria’s digital payments infrastructure: The path to economic growth" class="wp-image-213813">
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Now, SMEs can scale their existing services into new African and global markets by capitalising on the growing digital payment infrastructure without the need to build their payment infrastructure or platforms. With just the right payment partner, businesses can expand into new territories by establishing a virtual financial presence, helping duplicate their services in the new market. 
By leveraging the shared infrastructure and resources from their payment partner, enterprises can now mitigate risks while gaining access to local knowledge and networks. 
<h4 id="enabling-enterprise-to-meet-its-full-potential" class="wp-block-heading">Enabling enterprise to meet its full potential</h4> 
The increased access to new markets for enterprises, facilitated by the digital payments space, enables their ability to scale up, compete with larger firms, and increase their growth potential. 
By scaling effectively, East African SMEs can keep up with customer and market demands, improve their efficiencies and find new avenues of revenue growth without being held back by a lack of resources or infrastructure. 
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 <img loading="lazy" decoding="async" width="750" height="354" src="https://technext24.com/wp-content/uploads/2019/09/CBN-Seeks-Middle-Ground-Between-Telcos-and-Banks-Proposes-Payment-Service-Banks-750x354.jpg" alt="CBN Releases New Regulations and Sanctions for Electronic Payments in Banks and Other Financial Institution" class="wp-image-34761" srcset="https://technext24.com/wp-content/uploads/2019/09/CBN-Seeks-Middle-Ground-Between-Telcos-and-Banks-Proposes-Payment-Service-Banks-750x354.jpg 750w, https://technext24.com/wp-content/uploads/2019/09/CBN-Seeks-Middle-Ground-Between-Telcos-and-Banks-Proposes-Payment-Service-Banks-750x354-300x142.jpg 300w" sizes="(max-width: 750px) 100vw, 750px">
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It encourages innovation, which could see the development of new products and services, increase sales opportunities, and further their ability to serve more customers and expand into new markets. 
As the rapid growth of digital payments technology continues, we can expect to see more enterprises take advantage of the increased access to new markets, resulting in the growth of SMEs across the region and subsequently driving the creation of better-paid jobs, economic growth and ensuring more competitive economies. 
Read also: <a href="https://technext24.com/2024/08/16/mastercard-scale-digital-payment-africa/">Mastercard collaborates with Scale to accelerate digital payment in Africa, Middle East</a>
The post <a href="https://technext24.com/2024/10/08/digital-payments-facilitating-access/">Better digital payments infrastructure is facilitating access to new markets for enterprise</a> first appeared on <a href="https://technext24.com">Technext</a>.

Better digital payments infrastructure is facilitating access to new markets for enterprise

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