Raenest CEO explains why African businesses still struggle to move money across borders

Raenest CEO and co-founder Victor Alade believes the biggest challenge facing businesses operating across borders goes beyond sending and receiving money. The real challenge is managing different currencies, banking relationships, and regulatory requirements without losing visibility or control over finances.

For an African business selling to customers abroad, an international payment is rarely an isolated transaction. The money may need to be converted to local currency, used to pay employees, sent to suppliers abroad, or held in a foreign currency for future expenses.

Each step introduces another decision, cost, or potential delay. Businesses may also have to work with multiple financial providers, complete repeated verification processes, and deal with uncertainty over when funds will arrive.

These problems become more significant as companies expand into new markets, hire international talent and depend on suppliers outside their home countries. Yet access to reliable financial infrastructure has not always kept pace with how quickly businesses are becoming global.

Speaking with Technext, Alade said the problem became clearer as Raenest grew from helping Africans receive payments from international clients to serving businesses with more complex financial needs.

“When you solve the initial problem of receiving money, the next questions appear: Where do I hold it? When should I convert it? How do I pay for the tools I use or send money to someone in another country?” he explained.

For businesses, these questions extend to managing suppliers, employees and several currencies at once. A company might receive dollars, pay salaries in naira and purchase services in pounds. It needs to know how much money it has available, what each transaction will cost, and whether funds will arrive in time to meet its obligations.

The difficulty, Alade argued, is not simply moving money. It is coordinating the financial activities that surround each payment.

The hidden cost of operating across borders

Cross-border finance brings unique challenges that can complicate decision-making for businesses. Uncertainties around how long transactions will take, fluctuating exchange rates, and the actual amount a recipient will receive can hinder proper planning for expenses and cash flow management.

For instance, a late payment to a supplier can disrupt operations even if there’s enough money available to pay. Similarly, if a company has funds in one currency but needs to pay expenses in another, it faces tough choices about when to convert that money and how much risk from exchange rate changes it can handle.

These issues become even more complicated when businesses operate in countries with varying banking systems and regulations.

Raenest, for example, has expanded from Africa into markets like the US, India, and the Philippines. Alade emphasises that financial services can’t just be copied from one country to another; they need to be tailored to local customs and conditions.

In different markets, customer documentation, preferred payment methods, and currencies can all differ significantly. What works seamlessly in one place may create friction in another. This highlights the importance of local expertise and strong banking partnerships for smooth cross-border operations.

For fintech companies, the challenge is clear: how can they simplify international financial activities for their customers while navigating these various systems? As competition in cross-border payments grows, reliability is becoming crucial. Sure, faster transfers and lower fees are important, but businesses also want providers that can adapt to regulatory shifts and unexpected issues.

Also read: How Xara’s ambitious AI assistant is transforming finance on WhatsApp

When a company relies on a financial platform for paying employees or suppliers, any disruption can impact the entire operation. Therefore, the ability to maintain service continuity and communicate effectively during issues is now a key expectation from financial providers.

Can stablecoins address some of these problems?

Stablecoins have emerged as another possible route for moving money internationally. Designed to maintain a relatively stable value against an underlying asset, often the US dollar, they can provide an alternative to some traditional payment routes.

Their potential appeal is clear in markets where international transfers can be slow, expensive or difficult to access. However, using a stablecoin to move value is not the same as having a complete financial service.

Customers still need secure ways to hold their assets, convert them into local currencies and make payments to people or businesses that may not accept digital assets directly. Liquidity, regulatory compliance and reliable local payout options also matter.

Alade believes stablecoins could become a more useful part of everyday financial activity, provided people can use them without having to understand the technology behind them.

“At Raenest, our philosophy on stablecoins is simple: you should be able to do with stablecoins anything you can do with your US dollars or naira: receive, hold, send, spend and grow your money,” he said.

For businesses, that could mean receiving an international payment and using the funds to settle a supplier’s invoice. For individuals, it could mean receiving earnings, holding money in dollars or converting it into local currency when needed.

But whether stablecoins become mainstream will depend on how reliably the surrounding services work. Businesses also need clear transaction records and reconciliation tools to ensure their financial records remain accurate.

The wider challenge is making new payment technologies useful within the financial activities people already carry out, rather than asking customers to navigate additional complexity.

Raenest’s CEO explains what African businesses will need next

As more African businesses expand their reach internationally, their financial needs are becoming increasingly complicated. Along with the basics like international money transfers and multi-currency accounts, these companies need better tools to manage cash flow, control employee spending, handle payroll, and reconcile transactions efficiently.

Access to financing is crucial, especially for businesses with a solid trading history that may struggle to secure working capital. This is where technology can come into play. “The long-term challenge is to build financial services that remain dependable as businesses grow and markets change,” says Alade.

He envisions a future where African companies can seamlessly collect international revenue, pay suppliers, and manage team expenses with fewer cumbersome processes.

Individuals, too, should have the ability to receive payments, hold various currencies, and build savings or investments without facing unnecessary hurdles. Better financial histories for customers could lead to more tailored services and better access to financing options.

The pressing question is whether the financial infrastructure can adapt quickly enough to support these aspirations. Although African businesses can connect with customers globally, managing the financial side of international transactions can still be tricky.

To succeed, businesses need more than just faster payment systems; they need reliable connections between accounts, currencies, compliance, and the daily financial decisions businesses make. For African companies aiming to compete on the world stage, this infrastructure may soon prove just as vital as the technology or products they offer.

See also: The digital gold rush: why fintechs are turning investment into a staple