Africa stands at a critical juncture in its development, with immense potential driven by a youthful population, rich natural resources, and expanding consumer markets. However, while economic growth has rebounded post-pandemic, it remains below pre-pandemic levels, limiting progress toward the Sustainable Development Goals (SDGs). The African Continental Free Trade Area (AfCFTA), launched in 2021, presents a transformative opportunity to accelerate trade-led integration and drive inclusive, sustainable development.

This policy paper explores the transformative potential of digital remittances in Southern and Eastern Africa, highlighting their role beyond mere financial transactions. Digital remittances have become increasingly significant due to the proliferation of mobile networks, the rise of fintech startups, and government initiatives promoting digital payments. The transition into the digital age and the adoption of digital remittances present a new set of challenges. From regulatory challenges to cybersecurity concerns, the journey toward digital remittances is fraught with hurdles.