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Ap/ar automation in african trade 2025
EO
Eniola Oshati
Content associate
August 22, 2025 4 min read
How automated payables and receivables unlock working capital, trust, and growth across African corridors
Executive summary
Intra-African trade grew toUS$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.KenyaandNigeriaintroduced mandatory e-invoicing.PAPSSis 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 rulesin Kenya and Nigeria are forcing digital invoicing.
- PAPSSis reducing cross-border settlement delays.
- Automationlowers invoice costs and cycle times.
- Mobile moneyhandles over US$1.4 trillion yearly, creating rails for SME payouts.
- AfCFTAmomentum makes AP/AR automation essential for growth.
Why AP/AR Automation Matters Now
Intra-African trade rose toUS$192bn in 2023. This is proof that regional commerce is deepening.As a result, payment systems must adapt.PAPSSnow 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 processedUS$1.4 trillion in 2024with 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 is9.2 days. Best-in-class firms do it in3 days. The cost per invoice has dropped belowUS$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 likeDuplo’s State of B2B Payments in Africaconfirm 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.
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