How automated payables and receivables unlock working capital, trust, and growth across African corridors
Executive summary
Intra-African trade grew to US$192bn in 2023, equal to 15% of Africa’s total trade. (( https://blog.useyala.com/nigerias-top-10-foreign-trade-partners-in-2024-and-how-businesses-can-automate-finances-for-growth/) This increase from 13.6% in 2022 shows AfCFTA’s positive impact.
At the same time, Africa’s payment systems are changing. Kenya and Nigeria introduced mandatory e-invoicing. PAPSS is expanding to reduce costs, cut FX risk, and speed up settlements.
For businesses, automation of accounts payable (AP) and accounts receivable (AR) is now a game changer. It improves cash flow, reduces errors, and helps firms access working capital faster
Key Takeaways
- Compliance rules in Kenya and Nigeria are forcing digital invoicing.
- PAPSS is reducing cross-border settlement delays.
- Automation lowers invoice costs and cycle times.
- Mobile money handles over US$1.4 trillion yearly, creating rails for SME payouts.
- AfCFTA momentum makes AP/AR automation essential for growth.
Why AP/AR Automation Matters Now
Intra-African trade rose to US$192bn in 2023. This is proof that regional commerce is deepening. As a result, payment systems must adapt. PAPSS now connects over 150 banks and 15 central banks. In addition, an Africa Currency Marketplace will soon allow direct currency matching. This means faster and cheaper cross-border payments. Meanwhile, mobile money is exploding. It processed US$1.4 trillion in 2024 with 1.75 billion registered accounts. For example, SMEs use it daily for payouts and collections.
Therefore, AP/AR automation is not just optional. It is the key to speed, trust, and liquidity.
Regulation Driving Change
- Kenya (eTIMS): From January 2024, all businesses must issue e-tax invoices to claim expenses. (KRA)
- Nigeria (CBN e-invoice): Since February 2022, all import and export invoices must be filed electronically. (CBN)
In other words, compliance rules are creating a natural on-ramp for automation. They standardize invoice data, cut manual errors, and improve tax trust.ors.
Global Benchmarks and African Opportunity
Globally, the average time to process an invoice is 9.2 days. Best-in-class firms do it in 3 days. The cost per invoice has dropped below US$10. For African SMEs, this speed matters even more. Cash flow gaps are common, and banks are expensive. Therefore, automation shortens the “invoice-to-cash” cycle. It reduces reliance on short-term credit and frees up capital.
Reports like Duplo’s State of B2B Payments in Africa confirm that trade finance and payment integration remain core bottlenecks.
What Automation Fixes
- Errors: PO and invoice matching reduce disputes and blocked payments.
- Cash flow: Automated reminders and reconciliation speed up collections.
- FX exposure: Forecasting AR alongside PAPSS corridors reduces stranded liquidity.
As a result, firms gain control of both payments and receivables.
Sector Snapshots
- Exporters & Importers: E-invoicing cuts clearance delays and builds supplier trust.
- Logistics & Distribution: Three-way match automation reduces backlog in high-volume AP environments.
- E-commerce & Marketplaces: API-enabled AR automation enables faster settlements and fewer failed payments.
In short, every sector sees value in faster, cheaper, and safer transactions.
Barriers to Adoption
- Fragmented systems: SMEs often use disconnected accounting tools.
- Data quality: Poor invoice data slows automation ROI.
- FX and settlement risk: Liquidity shortages and currency controls create delays.
However, PAPSS expansion aims to solve these cross-border challenges.
Conclusion
African trade is entering a new phase under AfCFTA. At the same time, financial operations must evolve. AP/AR automation improves compliance, reduces costs, and accelerates cash flow. It helps SMEs access working capital and builds trust across borders. Therefore, automation is not just a tool. It is the lever that will unlock Africa’s trade growth in 2025.
