Africa’s economic momentum is gathering pace, with rising savings, increased cross-border payments and growing participation in formal financial systems pointing to stronger economic activity across the continent.

Latest figures from Standard Bank, the parent company of Stanbic Bank Ghana, show that deposits increased by 12 per cent to R2.5 trillion, while the value of domestic electronic payments rose by 11 per cent and cross-border payment values increased by seven per cent.

The bank, which serves 19.5 million active clients across 21 African countries, said the trends reflected increased savings by households, higher business transactions and growing activity along key trade corridors.

As the African Continental Free Trade Area (AfCFTA) gathers momentum and digital connectivity expands, payment flows and savings behaviour are increasingly reflecting the emergence of more integrated African economies.

Lungisa Fuzile, Standard Bank Chief Executive for Africa Regions, said the developments were evidence of growing economic momentum across several African markets.

“What we are seeing across many markets is clear evidence of economic momentum. As more people participate in the formal financial system, as businesses trade across borders and as savings pools deepen, the foundations for sustainable growth become stronger,” he said.

He said the bank’s operations covered markets that collectively accounted for more than two-thirds of Africa’s Gross Domestic Product (GDP), giving it a broad view of changing economic patterns across the continent.

According to him, growing domestic consumption, business formation, trade and investment flows were signs of increasing economic participation.

The value of domestic electronic payments processed through Standard Bank increased by 11 per cent, while cross-border payment values rose by seven per cent. The bank currently has a 19 per cent market share of cross-border payments across its African markets.

Mr Fuzile said the increased payment activity also demonstrated the growing commercial impact of the AfCFTA.

“The African Continental Free Trade Area is often discussed in policy terms, but its impact is increasingly visible in commercial activity. Every payment reflects a transaction. Every transaction reflects business activity,” he said.

He added that the steady rise in payment flows suggested that economic integration was gradually becoming a reality for African businesses.

Meanwhile, deposits increased to R2.5 trillion, outpacing loan growth of seven per cent and creating larger pools of domestic capital that could support economic development.

“When households save, when entrepreneurs build businesses and when companies invest for growth, they create the foundations for stronger economies,” Mr Fuzile said.

Mr Fuzile said Africa’s next phase of growth would be driven by improved infrastructure and greater economic participation.