Expanding into international markets unlocks new opportunities for exporters, but it also comes with financial challenges, especially when it comes to collecting foreign currency payments.
Issues like currency fluctuations, slow settlements, and high conversion costs can erode profits and disrupt cash flow, making efficient payment solutions essential for sustained growth.
The good news? There’s a smarter way to collect international payments.
In this guide, we’ll break down the common challenges exporters face and how businesses can streamline their FX collections for faster, more cost-effective transactions
The Key Challenges Exporters Face in FX Collections from Africa
Many exporters encounter challenges when receiving payments from African buyers. Here are some of the most common obstacles:
1. Limited Banking Infrastructure
Many African businesses struggle with cross-border payments due to limited access to international banking networks.
Your Nigerian buyer initiates a bank transfer for a large order, but because their bank has limited access to international networks, the payment takes over a week to process. Worse still, additional transaction fees are deducted along the way.
Now, you’re considering turning down the whole order because you can’t afford the delays and hidden costs cutting into your margins. The longer the payment takes to arrive, the more strain it puts on your cash flow, making it harder to fulfill future orders or reinvest in your business. If this happens repeatedly, you might start avoiding certain markets altogether—limiting your growth potential in Africa.
2. Currency Volatility & Conversion Costs
Currencies like the Nigerian Naira (NGN) and the Kenyan Shilling (KES) can experience high volatility. If you’re invoicing in local currencies, exchange rate fluctuations can impact the final amount you receive. Additionally, multiple conversions (e.g., NGN → USD → EUR) can increase FX costs.
3. Complex Compliance & Regulations
Regulatory frameworks across African countries vary significantly, with some governments enforcing strict FX controls. If a buyer has ever told you they couldn’t remit payment due to local restrictions, you know how compliance challenges can disrupt your business. Without a trusted payment partner well-versed in these regulations, navigating them can become a complex and time-consuming task.
4. Slow Settlement Times
Traditional bank transfers from Africa to countries in other continents can take days or even weeks. Imagine you’ve lined up a new supplier for raw materials, but you can’t place an order until your last payment from Kenya clears. Traditional bank transfers can take days—or even weeks—leaving your business in limbo. These slow settlements slow down your cash flow, make financial planning difficult and can put unnecessary strain on your operations.
How Cedar Money Solves These Challenges
At Cedar Money, we simplify FX collections for exporters selling to Africa by providing a direct, reliable, and cost-effective way to receive payments. Here’s how:
1. Pan-African Coverage
With Cedar Money, you can collect payments from 9 African countries (Nigeria, Kenya, Tanzania, Ghana, Rwanda, Ivory Coast, South Africa, Uganda and Zimbabwe), in their own local currency and receive funds in major currencies like USD, EUR, GBP and more to over 130 countries, eliminating the hassle of dealing with multiple banking relationships and unnecessary conversions..
2. Faster Settlements
Unlike traditional financial providers, Cedar Money provides quick T+1 settlement and sends funds directly to your bank account, ensuring fast payment processing and helping you maintain consistent cash flow..
3. Competitive FX Rates & Transparent Fees
By leveraging Cedar Money’s cross-border payment network, you get access to competitive FX rates and avoid hidden fees. Our transparent pricing structure ensures you always know how much you’re receiving.
Pro tip: you can get instant notifications for a target FX rate when you turn on Rate Alerts on your app dashboard. Download Cedar Money App now.
4. Compliance & Regulatory Expertise
We ensure seamless and compliant transactions across multiple African markets by handling all the complex compliance requirements, including FX controls and transaction monitoring.
Take Control of Your FX Collections
For businesses exporting to Africa, FX collections don’t have to be a barrier to growth. With Cedar Money, you can eliminate unnecessary delays, reduce FX costs, and simplify the entire process.
Ready to streamline your FX collections? Join thousands of businesses simplifying their FX collections with Cedar Money—get started on Cedar Money!
