Rethinking Cross-Border Payments in Africa

The movement of money across borders in Africa often mirrors the continent’s trade challenges: slow, expensive, and circuitous. When a Lagos importer pays a supplier in Nairobi, the funds typically traverse multiple correspondent banks, including one in New York, before finally reaching their destination—a journey that can take three to seven business days.

This inefficient system costs businesses dearly, with average remittance fees reaching 8-10% (among the highest globally) and delays impacting cash flow, procurement cycles, and even lost deals. Enter Bani, a startup co-founded by Rodney Jackson-Cole, who previously led technology at Prospa and NestBank.

The Problem With Current Infrastructure

Jackson-Cole highlighted this issue with trader’s urgency: “Goods move faster than money on this continent.” He explained that the wait for payments to clear can exceed the time it takes for physical shipments, creating a drag on businesses across Africa.

Adding to the challenge, global banks have been reducing their correspondent banking presence in African markets—a trend that narrows payment channels just as trade volumes grow. The cross-border payments market is projected to reach $1 trillion by 2035, underscoring both its potential and current inefficiencies.

Bani’s Solution: Local Rails for Faster Settlement

Bani offers a direct alternative by enabling businesses to collect local payments through bank transfers and mobile money while settling cross-border transactions in minutes—using local currency rails and stablecoin technology. The company integrates directly with banks, claiming customers can save up to 25% on transaction costs.

Rather than seeking large venture funding rounds, Bani has bootstrapped its operations, prioritizing real customer usage over investor hype. “Payments is a trust business,” Jackson-Cole emphasized. “Trust comes from consistent performance, not funding announcements.” The company’s revenue covers its expenses, allowing it to expand on its own terms.

Future Expansion and Regulatory Compliance

Bani plans to extend its reach across key trade corridors—West Africa to East Africa, Nigeria to China, and new routes enabled by the African Continental Free Trade Area. A primary focus is adding more currencies and deepening bank integrations while meeting regulatory requirements in each market.

Jackson-Cole sees compliance as a strategic advantage: “Anyone can move money once. Moving it every day, across multiple jurisdictions, with full transparency—that’s the real product.” This emphasis on reliability builds trust and creates barriers to entry for competitors.