Walk into any small business in Lagos, Nairobi, or Johannesburg, and you’ll see the same thing: ambition trumping circumstance. Small and medium-sized enterprises (SMEs) make up the majority of businesses across the continent, such as in sub-Saharan Africa where they account for 95% of all registered businesses and contribute 50% of the total gross domestic product (GDP). Yet most are locked out of the benefits of cross-border trade. The reason is not lack of talent or opportunity. It’s because the financial infrastructure is fractured, outdated, and at times stacked against them.

Today, the trade finance gap in Africa stands at a concerning $120 billion. Stretch the definition to include systemic barriers, and the shortfall climbs to an immense $420 billion, according to some experts who link this figure to outdated global regulations, systemic de-risking, and long-standing institutional biases that marginalise African markets. And while large corporates can navigate this heightened complexity, many African SMEs are left struggling with paper-based processes, siloed payment systems, and the ongoing dominance of the US dollar.

This is why interoperability standards – those governing the systems that oversee the seamless interaction and data exchange between different banking platforms, networks, and payment systems – matter. They are the difference between exclusion and inclusion, and the solid basis for a pan-African marketplace. And more importantly, they are a powerful tool to level the playing field for small businesses.

Let’s look at some of the systems and standards that are making their way across the continent. ISO 20022, the global standard for financial messaging now being rolled out in countries across Africa. Essentially, it is a universal messaging standard for the financial industry, creating a global ‘language’ for payments, securities, trade services, and more. By adopting these standards, financial institutions can secure detailed tracking of trade terms and invoices, improving compliance and risk assessments. 

Through sharper risk assessments, instant reconciliation, and trade terms verification at speed, we can spend more time positioning African traders on the global stage – helping them to speak the same language. Working capital cycles shorten and access to finance expands, so for SMEs used to waiting weeks for payments to clear, this goes beyond incremental progress.

The same, positive story plays out with the Pan-African Payment and Settlement System (PAPSS). For decades, African traders have had to route payments through New York or London just to buy goods from their neighbours. The impact? Wasted time and heightened costs. PAPSS changes that by enabling real-time settlement in local currencies, slashing transaction costs – with an aim to reach $5 billion annually. While implementation of the system continent-wide requires careful navigation among governments and central banks in charge of monetary policy, a system such as this would mean more cash in hand, faster deals closed, and a realistic chance to scale across borders for even micro enterprises.

We’ve already seen an example on slightly smaller scale with the regional cross-border real-time gross settlement system in the SADC region (SADC-RTGS), the network that already delivers same-day, cross-border payments across Southern Africa. It shows what’s possible when regulators, banks, and technology providers commit to common standards. Extend that across Africa, and suddenly an SME in Lusaka can trade with a partner in Dar es Salaam as easily as a multinational does.

Banks are important role players in the shift towards better payment systems and investment in interoperability – systems and products working together to improve capabilities across the board. Absa has managed to cut processing times in trade finance by over 60% for their clientele though digital platforms like Trade Management Online, AI-powered document processing, and its interoperability gateway. These systems are helping to open up trade finance access while enabling SMEs to manage digital trade, heightening both their reach and confidence.

But if ISO 20022 and PAPSS are the established groundwork, tokenisation is a future game-changer. Imagine invoices or bills of lading existing not as static documents or PDFs, but as secure digital assets that can be transferred, financed, and traced in real time. For SMEs, tokenised trade documents mean faster funding, less opportunity to fall victim to fraud, and new trust in markets where informal businesses are still central to the economy.

Kenya is seemingly leading the way on the digitisation front, with a goal to tokenise securities, enabling an expansion of participation in capital markets through real-time settlement, fractional ownership, and increased transparency of stocks, bonds, or infrastructure instruments. But the challenge of implementation is less about technology and more about regulation. Africa needs legal recognition of digital documents, alignment on standards, and investment in digital infrastructure. If we can secure the standards and capabilities, tokenisation could do for trade what mobile money did for payments.

Africa is making progress in eliminating trade borders – such as the recent recommitment to accelerating the African Continental Free Trade Agreement – but there is a similar need to mitigate digital and financial borders too. With such barriers removed, SMEs can finally compete on equal footing, tapping into regional value chains and global markets alike.

SIBOS 2025 is the right moment to make this case. Global banks, regulators, and policymakers will gather to debate the future of finance. African institutions must use this stage to argue that interoperability frameworks and systems – alongside regulatory development – can be transformative. 

Build the bridge of interoperability, and the new modern generation of scaled, intra-regional traders will become the drivers of the continent’s growth.