Africa Faces Wide Stablecoin Exchange Costs Amid Market Fragmentation

Borderless data show Africa’s stablecoin spreads vary sharply, with Botswana and Congo among the highest costs, underscoring market fragmentation.

Rich by Coin

2026-02-11

In January, Africa led the world in the size of stablecoin conversion spreads, according to Borderless data. The region’s median rate difference was 299 basis points (approximately 3%). In Latin America, this figure was 1.3%, while in Asia it was just 0.07%.

The cost of transactions within the continent varies significantly. In South Africa, conversion costs around 1.5%, whereas in Botswana it reached 19.5%. Analysts attributed this disparity to the level of competition and liquidity in local markets: In countries with multiple providers, fees range from 1.5% to 4%. In markets with a single operator, user expenses often exceed 13%.

Botswana recorded the worst result in January (19.4%), with high costs also noted in Congo (>13%). In South Africa, where the currency market is more developed, conditions were more favorable. The study also compared stablecoin rates with the traditional interbank market.