Visa Inc has disclosed plans to invest $1 billion in Africa over the next five years to capitalize on the emerging economy’s rapid growth in digital payments.
The company announced this on Wednesday at the U.S.-Africa Leaders Summit.
President Joe Biden of the United States is hosting dozens of African leaders for the three-day event, which began on Tuesday in Washington, D.C.
Chief Executive Officer Alfred Kelly Jr said in a statement; “Visa has been investing in Africa for several decades to grow a truly local business.”
According to a McKinsey report published in September, the investments in Africa shed new light on a major growth opportunity on the continent, where cash is likely to be challenged in the coming years as e-payments gain traction.
The report further added, Africa’s booming e-payments market is expected to grow by nearly 20% per year, reaching around $40 billion by 2025, compared to around $200 billion in Latin America.
Since the end of 2019, the world’s largest payment processor has added more than 50% more employees in the continent, with the vast majority hired during the pandemic, he added.
Visa’s regional president for central and eastern Europe, Middle East and Africa, Andrew Torre, told Reuters in an interview on Wednesday.
According to the statement, the investments will help Visa expand its operations in Africa and strengthen ties with governments, fintechs, and merchants. It will also help “strengthen the payment ecosystem through new innovations and technologies”.
Among the latest innovations is Visa Acceptance Cloud, a platform that converts virtually any device into a payment terminal.
