Stablecoins Cut Africa’s Cross-Border Payment Delays

African businesses are increasingly using stablecoins to address cross-border payment delays, limited US dollar access and high settlement costs, according to Kora CEO Dickson Nsofor. He said supplier payments, commercial settlements and cross-border payouts are driving demand. Nsofor recalled that paying a Chinese manufacturer from Nigeria once took 10 to 14 days through correspondent banks. Stablecoins can provide a dollar-based settlement layer, reduce reliance on multiple banks and currency conversions, and help payment providers manage liquidity across markets. However, savings depend on local currency conversion, funding, withdrawals and payout infrastructure. A Banca d’Italia study of 200 USDC transfers across 10 international corridors found costs ranging from 0.30% to nearly 9%. Transfers involving South Africa took one or two business days when traditional banking rails were used, while corridors supported by instant-payment systems settled in under 20 minutes. Kora says stablecoin adoption still requires interoperability with banks, mobile-money networks and merchants, as well as licensing, identity checks, anti-money-laundering controls and transaction monitoring. Nsofor also warned that reliance on foreign dollar-backed token issuers creates risks involving reserves, redemption, regulation and continued access. For crypto traders, the trend signals growing real-world stablecoin utility and payment-network demand, but not an immediate directional catalyst for major crypto assets.