Stablecoins promise cheap, fast transfers to Africa, but converting them to local cash remains expensive.
A January 2026 analysis of 66 African corridors by Borderless.xyz found a median spread of 3% (299 basis points) — the highest globally — compared to 1.3% in Latin America and 0.07% in Asia.
Costs vary widely:
- South Africa: ~**1.5%**
- Nigeria, Kenya, Ghana: ~**3%**
- Congo: >**13%**
- Botswana: 19.4% (highest)
The key driver is competition, not blockchain technology. Corridors with multiple providers show spreads of 1.5–4.1%, while single-provider routes often exceed 13%.
Stablecoins are only slightly more expensive than bank FX rates globally (~0.05% premium), but in Africa the median premium reaches 1.2% above interbank rates.
Limited competition and low market depth keep real-world cash-out costs high in many African countries, reducing stablecoins' promised savings.#Borderless $BNB @Binance South Africa Official
