This scarcity creates a complex and costly pricing structure for businesses seeking to transact with African markets, with significant markups and limited liquidity options, leading to inefficiencies and delays in payment processing.

Why Global Banks Struggle with African Currencies

Global banks typically prioritize major currency pairs, leaving smaller, less-traded African currencies in the margins. This lack of focus creates a number of pricing challenges, including:

High FX Spreads: Global banks often apply large foreign exchange spreads on African currencies due to the perceived volatility and lower liquidity. Businesses transacting in African markets can face up to 10% in FX spreads, a cost that can erode profit margins.

Limited Availability: African currencies are not always readily available for conversion, forcing businesses to rely on intermediaries or make multiple conversions (e.g., converting from an African currency to USD, then to EUR), further increasing costs and complexity.

Slow Processing Times: Due to the lack of established infrastructure and correspondent banking relationships, global banks often experience delays in payment processing. Payments to and from African countries can take several days, or even weeks, to complete, negatively impacting cash flow for businesses.

How IPT Africa Solves These Challenges

IPT Africa is purpose-built to address these pricing and liquidity challenges, offering a comprehensive, reliable, and cost-effective solution for businesses transacting in African currencies. Here's how:

1. Real-Time Pricing in 34 African Currencies: Unlike global banks, IPT Africa specialises in providing real-time pricing for over 34 African currencies. Businesses no longer need to worry about excessive FX spreads or limited currency availability. IPT Africa ensures competitive pricing, reducing transaction costs and enhancing profitability.
2. Transparent and Fair Pricing: IPT Africa operates with transparency, offering clear and predictable fees. Instead of facing unpredictable FX rates and hidden fees, businesses benefit from pricing that ranges from 0.75% to 2%, significantly lower than the inflated spreads of global banks.
3. On-Demand Liquidity: IPT Africa’s treasury function offers access to deep liquidity in African markets, allowing businesses to transact seamlessly without the delays typically experienced with global banks. This ensures faster payment processing, helping businesses maintain healthy cash flow and reducing the risk of operational disruptions.
4. Faster Transaction Times: Through IPT Africa’s advanced payment infrastructure, transactions are processed swiftly. Payments that once took weeks through traditional banks are now settled in real-time or within 24 hours, giving businesses confidence in their ability to meet payment deadlines and maintain relationships with suppliers and customers.

Empowering Businesses to Thrive in Africa

As Africa’s economies continue to grow and integrate with global markets, businesses need a reliable partner that can navigate the complexities of pricing and liquidity.

IPT Africa provides that solution through The Payment Super highway, empowering businesses to transact confidently, reduce costs, and improve operational efficiency when dealing with African currencies.

With IPT Africa’s seamless, real-time payment infrastructure, businesses can unlock the full potential of the African market without being weighed down by the limitations of global banks. Whether you are a corporation, NGO, or financial institution, IPT Africa ensures you have the tools and support you need to succeed in Africa's dynamic and emerging economies.

If you would like to know more about our offering, or just connect over how to best tackle Africa, drop up a line here or check out our website