African firms lose billions to costly cross-border payments

African businesses continue to lose significant capital to high cross-border payment costs, opaque foreign-exchange spreads, lengthy correspondent banking chains and complex compliance requirements that are often poorly suited to regional trade.

On a typical $20,000 supplier payment, a hidden foreign-exchange spread of 1.5 per cent can cost a business more than N400,000, while delayed settlements can strain relationships with suppliers and disrupt cash-flow planning.

The challenge has been intensified by persistent foreign-exchange volatility and liquidity constraints across Sub-Saharan Africa.

In markets such as Nigeria, businesses have also faced periods of limited access to foreign currency, making it more difficult for commercial banks to meet corporate demand for import payments promptly.

The friction has become more significant as businesses expand under the African Continental Free Trade Area, with companies increasingly required to manage high transaction costs, clearing fees and multiple currency conversions when settling regional trade invoices.

Against this backdrop, cross-border payments platform Oneremit said it has expanded its operations to serve more than 1,000 businesses and processed over $200m in outbound commercial transactions.

Founded in 2024 by Hammed Afenifere, Olusola Carter and Bolaji, the company said its growth reflects rising demand for more efficient payment infrastructure for African businesses conducting international transactions.

In a statement made available to The PUNCH, Oneremit co-founder, Olusola Carter, said Africa’s growing participation in global trade had not been matched by the development of payment infrastructure tailored to the needs of businesses on the continent.

“Running a business in Africa is already hard. Payments shouldn’t be,” Carter said, adding that the company was seeking to reduce the gap between Africa’s global trade ambitions and the payment infrastructure available to businesses.

Another co-founder, Bolaji, said the company works with banks, correspondent networks and international payment providers rather than seeking to replace existing financial institutions.

According to him, the platform coordinates payment routing across its network of partners to simplify international transactions for customers.

The company said its operating model combines regulatory compliance infrastructure with direct customer support.

It added that partnerships with international payment companies, including OwlPay, TerraPay and Blockradar, have helped improve settlement times, expand payment corridors and strengthen transaction monitoring.

Oneremit currently holds regulatory licences in Canada, the United States and Nigeria, while approvals are being pursued in the United Kingdom, Ghana and Tanzania.

The company said the additional licences form part of its broader expansion strategy across European and African markets.

The continued expansion of cross-border payment platforms highlights the growing demand for cheaper, faster and more transparent settlement systems as African businesses increase trade across regional and international markets.