Model for Regional Supplier Payment Standardization in African Procurement Networks

• Author(s): Babajide Oluwaseun Olaogun; Adaobu Amini-Philips; Ayomide Kashim Ibrahim
• Paper ID: 1711646
• Page: 562-577
• Published Date: 31-07-2019
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 3 Issue 1 July-2019

Abstract

The fragmentation of supplier payment systems across African procurement networks presents significant challenges to efficiency, transparency, and inclusivity in regional trade. Traditional approaches, often reliant on manual processes, diverse regulatory frameworks, and non-interoperable payment infrastructures, contribute to delays, high costs, and limited access for small and medium-sized enterprises (SMEs). These inefficiencies directly undermine the goals of initiatives such as the African Continental Free Trade Area (AfCFTA), which emphasize integration, competitiveness, and intra-African trade growth. To address these challenges, this study proposes a conceptual model for regional supplier payment standardization, designed to harmonize transaction protocols, enhance transparency, and strengthen trust across procurement ecosystems. The model integrates theoretical perspectives from systems theory, institutional economics, and network intermediation to conceptualize supplier payments as interconnected processes requiring both technological and regulatory coherence. Its core components include standardized payment protocols based on international digital formats (e.g., ISO 20022), interoperable digital platforms and APIs, regional settlement infrastructures, and harmonized compliance frameworks aligned with anti-money laundering (AML) and know-your-customer (KYC) requirements. By embedding these components within the operational structures of regional trade blocs such as ECOWAS, SADC, and AfCFTA, the model enables consistent, secure, and inclusive supplier payments across borders. Evaluation dimensions highlight potential benefits including reduced transaction costs, accelerated procurement cycles, improved visibility into supplier performance, and expanded access for SMEs via mobile payment solutions. Nonetheless, bottlenecks such as regulatory divergence, infrastructure gaps, and cybersecurity risks remain critical barriers to adoption. Pathways for overcoming these challenges include public-private partnerships, regulatory sandboxes, and capacity-building initiatives. The proposed model contributes to both academic discourse and policy debates on African trade facilitation. It underscores how harmonized supplier payment standards can accelerate procurement efficiency, foster trust, and strengthen regional integration, ultimately advancing Africa’s economic competitiveness in the global marketplace.

Keywords

African Procurement Networks, Cross-Border Payments, ISO 20022, Digital Payment Platforms, Mobile Money Integration, SME Inclusion, Procurement Transparency, Regulatory Harmonization, AML/KYC Compliance, Settlement Infrastructure, Regional Trade Blocs, Afcfta Integration

Citations

IRE Journals:
Babajide Oluwaseun Olaogun, Adaobu Amini-Philips, Ayomide Kashim Ibrahim "Model for Regional Supplier Payment Standardization in African Procurement Networks" Iconic Research And Engineering Journals Volume 3 Issue 1 2019 Page 562-577

IEEE:
Babajide Oluwaseun Olaogun, Adaobu Amini-Philips, Ayomide Kashim Ibrahim "Model for Regional Supplier Payment Standardization in African Procurement Networks" Iconic Research And Engineering Journals, 3(1)