Small and medium enterprises (SMEs) across Africa are rapidly adopting digital payments and innovative financial solutions to drive business growth and resilience, according to the latest Mastercard SME Confidence Index.
Released on February 20, 2025, the report highlights how SMEs in Nigeria, Kenya, Egypt, and Morocco are leveraging digitalisation to enhance efficiency, improve customer experiences, and boost financial inclusion.
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Digital payments fuelling SME expansion in Africa
With the digital economy expanding across Africa, SMEs are increasingly turning to cashless transactions to optimise business operations. In Nigeria, 99 percent of SMEs now accept digital payments, while in Kenya, the figure stands at 91 percent. This digital shift is enhancing operational efficiency, reducing cash handling risks, and streamlining supplier transactions. In Egypt, 85 percent of SMEs have adopted digital payments, citing faster revenue access and improved security as key benefits.
Despite slower adoption in Morocco, where 77 percent of SMEs have yet to embrace digital payments, there is growing awareness of its potential benefits, including fraud reduction and enhanced credibility. To accelerate digital transformation, Mastercard is actively supporting SMEs across Africa through strategic partnerships and innovative solutions.
Cybersecurity, financial access, and strategic collaborations
As African SMEs continue to digitalise, cybersecurity and financial access have emerged as top priorities. Businesses are increasingly investing in secure payment solutions to protect customer data and ensure seamless transactions. In Kenya, 70% of SMEs are focused on cyber-secure payment processing, reflecting a continent-wide emphasis on digital security.
Access to credit is another critical area, with over three-quarters of SMEs across Nigeria, Kenya, and Egypt prioritising financing for business growth and daily operations. In Nigeria, 47 percent of SMEs are seeking credit for expansion, while in Kenya, 40 percent are doing the same. Egyptian SMEs are also looking to credit as a strategic tool for financial resilience amid economic challenges.
Strategic collaborations are playing a crucial role in supporting African SMEs. Mastercard’s partnerships with local companies, such as Alerzo in Nigeria and Safaricom in Kenya, are expanding digital payment accessibility. In Egypt, collaborations with MaxAB are accelerating digital payment adoption, while in Morocco, educational initiatives are helping businesses build confidence in digital finance.
Resilience and optimism amid economic challenges
Despite facing challenges like inflation, rising costs, and economic uncertainty, African SMEs remain resilient and optimistic. In Nigeria, 78 percent of SMEs expect to maintain or increase their revenue this year, while in Kenya, 66 percent share the same positive outlook. In Morocco, 67 percent anticipate stable or improved revenue, driven by growing export opportunities and an expanding domestic market.
Mastercard is committed to empowering African SMEs by leveraging its extensive network, innovative technologies, and strategic partnerships. Through initiatives like Tap on Phone, QR Pay by Link, and educational programs, Mastercard is driving financial inclusion and supporting small businesses as they navigate the evolving digital landscape.
A digital future for African SMEs
As digital transformation accelerates across Africa, SMEs are positioning themselves at the forefront of economic growth and innovation. By embracing digital payments, prioritizing cybersecurity, and forming strategic partnerships, African SMEs are building financial resilience and competitiveness in a rapidly evolving market. With continued support from Mastercard and other stakeholders, the future looks promising for SMEs across the continent.