Digital currency promised cheaper transfers, but African users still face unexpectedly high conversion fees today.
African crypto conversion costs vary widely, exposing a major gap between promise and reality. Recent research shows the median cost to convert digital currency into local cash across Africa is about 3%. But in Botswana, users faced rates as high as 19.4% in January 2026 — the highest recorded among 66 African currency corridors studied.
The issue is not blockchain technology. Cross-border transfers work efficiently. The real cost problem appears at the final step: converting digital money into spendable local currency.
Markets with limited competition charge more. Congo’s rates exceed 13%, while South Africa, where multiple providers compete, maintains costs around 1.5%. Globally, digital currency exchange premiums average just 0.05%, but in Africa they jump to 1.2%.
The solution is clear: stronger competition and clear crypto regulations. Without new providers and defined rules, African users will continue paying more for the same digital services available elsewhere at lower cost.
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