African businesses face 20% losses on cross-border transfers

African companies can lose up to 20 per cent of their funds during overseas money transfers, according to Akinsola Jegede, founder of the fintech company VitalSwap.

A report by ODI Global regarding digital payments and identity in Nigeria under the AfCFTA highlights significant systemic barriers to intra-African trade. The study found that 84 per cent of surveyed businesses experienced system glitches, while 80 per cent reported regular delays in receiving payments from other African nations. Key obstacles identified include fragmented systems, misaligned regulatory processes, and repetitive verification requirements.

In response to these challenges, VitalSwap is developing a platform designed to help African businesses manage international transfers, collect overseas payments, and settle foreign supplier obligations. The company is specifically targeting sectors such as Nigeria’s automobile import market, where dealers must navigate time-sensitive payment processes for international auction platforms.