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The FX maze facing Canadian firms in Africa

Jun 11 2025

Canadian companies in Africa, especially in mining, energy, and infrastructure, often focus on operations and exploration, but one critical challenge is often overlooked: getting money out, as repatriating funds, paying global vendors, HQ costs, and investor returns get tangled in regulatory inefficiencies and cash logistics.

1. Repatriation restrictions & FX shortages

 

Many African nations impose strict capital controls and limit access to hard currency, often leaving profits stranded in local banks and hurting liquidity. With more than 50 countries and 40 currencies, fragmented FX regimes cause cross-border transfers to grind slowly.

 

2. Supplier and HQ payments at risk

 

Exporting payments from African subsidiaries is frequently delayed by manual approvals, documentation requirements, and inconsistent banking rules, which can severely impact project timelines and partner relationships.

 

3. Unpredictable central bank policies

 

FX and repatriation rules can change unexpectedly, triggering sudden liquidity bottlenecks in an instant. As example, in Nigeria's inflation reached 33.2 % in March 2024, the highest since March 1996, after the central bank unified exchange rates.

 

4. Intercompany settlement complexity

 

Managing payments across multiple African subsidiaries means dealing with different payment systems, reporting formats, and reconciliation processes, often without harmonized infrastructure.

 

According to the State of Inclusive Instant Payment Systems in Africa 2024 (IPS) report by the AfricaNenda Foundation, only 26 out of 54 African countries currently have a national instant payment system in place (IPS). [source]

 

5. Compliance risks and paperwork gaps

 

Transactions can be frozen due to missing documentation such as proof of purpose, tax certificates, or supplier forms, resulting in unpredictable delays and disruption of workflows. Imagine closing a major deal, only to have the payment stalled for weeks because a single compliance form wasn't properly filed, while vendors wait, operations stall, and confidence erodes.

 

6. Currency volatility and hidden costs

 

 

FX spreads and rapid depreciation can erode value quickly, making it difficult for Canadian companies in Africa to plan budgets, forecast profits, or settle international obligations. The Ghanaian cedi surged approximately 16 % against the US dollar in early 2025, reversing a 24 % depreciation from the previous year. [source] . These currency swings not only reduce profit margins but also expose companies to serious risks when transferring funds abroad.

 

At IPT Africa, we help Canadian companies navigate the complexities of moving capital out of Africa by offering:

 

  • Strategic FX execution tailored to local market conditions, with access to over 40 currencies across the continent.
  • Comprehensive solutions for repatriation and business payments.
  • In-depth regulatory guidance to ensure transactions meet country-specific compliance requirements and reduce delays
  • Full visibility and control over cross-border payments through our technology platform.

 

Our goal is to simplify cross-border payments so companies can focus on operations, not obstacles.

 

In Africa, operations are not just about execution, they are about moving money with speed, accuracy, and certainty.

 

Talk to us if you need more information on our tailored solutions.