Treasury Priorities for Multinational Corporations - Middle East and Africa

Treasury Priorities for Multinational Corporations | 17 Payment instruments Across the Middle East and Africa, the financial landscape for payments and collections is characterized by a strong foundation in traditional banking channels, with bank transfers overwhelmingly dominating as the preferred instrument, emphasizing the enduring criticality of established banking infrastructure. While cash and cheques maintain a major presence the region also exhibits distinct emerging trends in digital payments. East Africa stands out as a clear leader in the adoption of digital wallets and mobile money technologies, showcasing a significantly more advanced digital payment ecosystem. Concurrently, the Middle East and North Africa sub-regions demonstrate a more mature and widespread use of card payments, indicating a greater penetration of these systems compared to other parts of the broader MEA region. Sustained relevance of Letters of Credit, especially in trade finance, is a direct reflection of underlying business models and a strategic response to perceived counterparty risk. This is particularly evident in regions like Sub-Saharan Africa, where higher risk perceptions often necessitate the added security and assurance that Letters of Credit provide, thereby shaping transactional practices and mitigating potential financial exposures. Share of corporates using instrument 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bank transfer Letter of credit Digital wallets Cash/Cheque collection Cards Documentary collection 92% 33% 24% 12% 9% 9%