How Stablecoins Are Redefining Africa’s Trade

By Omolabake Fasogbon

The International Monetary Fund (IMF) recently noted the rising adoption of stablecoins in Nigeria, while raising concerns about its impact on  naira and financial regulation. The fund revealed Nigeria accounts for about 60 percent of all stablecoins inflows into Sub-Saharan Africa.

It linked this widespread adoption to the asset’s ability to facilitate cross-border payments and remittances faster and at a lower cost than traditional channels.

Beyond business transactions, the IMF acknowledged that households in the country are increasingly turning to digital assets to send and receive money across borders.

While Nigeria leads, other African countries are not slacking in adoption of stablecoins. A 2025 report on the State of the Digital Asset Revolution in Africa by Yellow Card revealed Sub‑Saharan Africa leads globally with a 9.3 percent adoption rate for stablecoins— a digital currencies designed to maintain a stable value.

This payment innovation draws on local macroeconomic gaps, particularly naira depreciation, fluctuating prices, and foreign exchange constraints for businesses settling obligations with foreign suppliers. Similar challenges across Africa drive the popularity of stablecoins. The continent imports billions of dollars in goods annually; according to trade data, Africa imported goods worth $699.36 billion in 2025.

Payment expert, Sheriff Adedokun noted that despite the continent’s vast trade prospects, structural challenges still limit its full potential. According to him, many SMEs face significant barriers when paying overseas suppliers, accessing foreign exchange, proving their financial history, or participating confidently in global trade.

These barriers exist alongside traditional forex delays that birth more costly hurdles, including inventory delays, lost revenue, higher consumer prices, broken trust between buyers and suppliers, constrained growth, and the risk of dealing with fraudulent agents.

He added that businesses’ plights are aggravated by a growing global trade finance gap of over $2.5 trillion, which disproportionately affects developing markets.

 Adedokun remarked that these barriers often exclude viable businesses not because they lack demand or ambition, but because the infrastructure supporting cross-border commerce remains fragmented and difficult to navigate.

  He asserted, however, that innovations like stablecoins are reversing long-standing narratives and raising hope for African business expansion and global trade participation.

According to Adedokun, who is also the Founder and CEO of Clea, a cross-border fintech app, this payment technology drives overall financial inclusion for businesses, not just individuals.

“Financial inclusion is often framed around access to bank accounts, but for businesses, I think the more important question is whether they can participate fully in economic opportunities beyond their local market,” he stated.

He stressed that for businesses to fully participate in global trade, a financial infrastructure designed around the realities of cross-border trade remains sacrosanct. Beyond facilitating payments, such infrastructure must offer multicurrency management, cash flow visibility, strong financial record-keeping, supplier relationship management, and scalability support.

“One of the biggest challenges facing SMEs across Africa is that many remain financially invisible despite running viable businesses. Without structured transaction histories, clear records, or reliable financial data, it becomes harder to access credit, build trust with partners, or participate fully in the global economy. We believe financial infrastructure should do more than move money. It should help businesses become more organized, more credible, and better positioned for growth,” he maintained.

Adedokun explained that these features are embedded in stablecoins, which Clea leverages these strengths to deliver integrated services to African businesses exploring global trade.

He hinted that shifting business trends aligning with stablecoin rails, further drove adoption.

“Stablecoins are moving quickly beyond speculation, as more businesses begin to see them as a practical settlement tool. While many people previously associated digital assets mainly with trading, the strongest use case for African businesses is utility.

“They want to pay suppliers, receive international payments, preserve value, and move money across borders faster. Furthermore, SMEs are becoming more open to digital financial rails when the product is simple and the compliance process is clear,” he stated.

He stressed that while fragmentation, access, and predictability remain the biggest challenges for SMEs, collaboration among fintechs, traditional banks, and stablecoins innovations will tame these hurdles, leveraging combined expertise of payment rails.

“Stablecoin rails help us improve settlement speed, reduce friction, and provide better traceability compared to informal channels. We are building a cross-border payment platform that uses modern rails, including stablecoins-powered infrastructure, to solve real payment problems for businesses and bridge major trade gaps that previously restricted African business participation in global trade. I see a collaboration between the three as the most likely and productive future,” he said.

Addressing IMF concern that stablecoins may erode monetary policy effectiveness, Adedokun explained that stablecoins are gaining traction because they deliver practical solutions.

He therefore urged a regulatory framework that supports responsible adoption and protects integrity of the financial system.

“The most effective approach is one that encourages innovation while ensuring appropriate oversight, accountability, and trust.”

Regarding the platform’s exposure to illicit transactions, he said no payment rail is immune, adding that solution lies in building the right controls rather than ignoring the technology.