Onafriq, Africa’s leading payments gateway, has announced a strategic partnership with Circle, a global leader in stablecoins and issuer of the USDC digital currency. This collaboration aims to revolutionize cross-border payments and digital financial services across Africa by leveraging blockchain technology and stablecoins to foster a more efficient, cost-effective payment infrastructure.
Addressing the Challenges of Cross-Border Transactions in Africa
Currently, over 80 percent of intra-African payments flow through correspondent banks outside the continent and are settled in foreign currencies such as the US dollar or Euro. This reliance results in approximately US$5 billion annually in transaction fees and hampers economic integration efforts within the region. The existing infrastructure often presents high costs, delays, and complexity, limiting financial inclusion and economic growth.
A Vision to Transform Payment Ecosystems
In response, Onafriq and Circle are pioneering the pilot use of USDC-powered settlement solutions within Onafriq’s extensive network, which connects over 500 wallets and 200 million bank accounts across more than 40 African markets. By integrating USDC, a stablecoin designed for secure and fast transactions, they aim to streamline cross-border payments, reduce costs, and enhance trust for both institutions and individual users.
Onafriq’s founder and CEO, Dare Okoudjou, emphasized the significance of this partnership, stating, “Our collaboration with Circle marks an important milestone, reinforcing Onafriq’s commitment to harnessing innovative technology to simplify cross-border payments. By integrating USDC, we can lower transaction costs, improve reliability, and build greater trust, fueling financial inclusion across Africa. We are not just imagining the future of payments—we’re actively building it.”
Unlocking Opportunities for Financial Inclusion and Economic Empowerment
Miriam Kiwan, Vice President for Middle East & Africa at Circle, highlighted the transformative potential of this collaboration, noting, “The emerging markets Onafriq serves have tremendous potential for digital asset innovation, particularly in the adoption of stablecoins for cross-border payments. Our partnership aligns with Circle’s mission to promote financial inclusion and make financial transactions more accessible and efficient in areas where traditional banking has often been costly and limited.”
Building a More Inclusive and Resilient Financial System
This partnership represents a significant step toward a self-reliant, modernized Pan-African financial system. By responsibly applying blockchain technology in close collaboration with regulators and financial institutions, Onafriq and Circle are laying the groundwork for a faster, more transparent, and inclusive payment ecosystem—empowering millions of Africans with better access to global financial networks and fostering economic growth across the continent.
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