Expanding Into Africa? Five Banking Questions Every Business Should Ask

What to ask your bank before you commit capital to a new market

For some of South Africa’s businesses expansion into the rest of Africa as their next growth opportunity. However sometimes they don’t effectively consider whether their bank is equipped to support that journey.

Expansion into a new market is often influenced by operational details that businesses underestimate. A delayed payment. Documentation that doesn’t meet a counterparty’s requirements. Foreign exchange costs that only become visible once the transaction is complete. Strategy may open the door, but execution determines whether expansion succeeds.

Imagine you’re paying a supplier in Ghana. Your supplier is ready to dispatch your order once payment reflects. If the payment passes through multiple intermediary banks or additional compliance checks delay settlement, production or shipment can be pushed back by several days. Those delays affect inventory, customer commitments and ultimately cash flow.

If you’re looking at Nigeria, Kenya, Ghana, Zambia or anywhere else on the continent, put your banking partner through a proper interview before you commit capital, stock or people. Here are five questions worth asking.

1. Do you have people on the ground where I’m expanding?

There is a meaningful difference between a bank that has a licensed presence in a country and one that relies primarily on correspondent banking relationships to facilitate transactions.

Correspondent banking plays an important role in international trade. However, involving additional institutions in the payment chain can introduce extra processing steps, fees and longer settlement times. When an issue arises, resolving it may require coordination across multiple organisations.

Ask directly:

• Do you have a licensed presence in this market?
• Do you have local relationship managers or specialists?
• Will my transactions be handled through your own network or through correspondent banking arrangements?

A bank with people on the ground can provide local market knowledge, help businesses navigate regulatory requirements and offer support that’s informed by first-hand experience of the market.

As Access Bank, we operate across more than 20 countries and three continents, with the majority of that presence in Africa. For businesses expanding across the continent, that’s an important conversation to have with any banking partner.

2. How quickly can I access foreign exchange, and what is the full cost?

Every cross-border transaction carries a cost. Some are obvious, such as transaction fees. Others sit behind the quoted exchange rate in the form of pricing spreads, intermediary bank charges or additional currency conversions. Individually these costs may appear small. Across regular supplier payments, they can have a meaningful impact on profitability.

Ask your bank to provide a worked example based on a transaction your business is likely to make.

For example, ask what it would cost to convert R500 000 into US dollars before settling a supplier invoice in another African market. Request a breakdown of:

• The exchange rate applied
• The pricing spread
• Transaction fees
• SWIFT or payment charges
• Any intermediary bank deductions
• Expected settlement timelines

Then ask what happens when speed matters.

Businesses trading across Africa often work with suppliers operating on tight production or shipment schedules. Understanding how quickly your bank can execute a foreign exchange transaction and initiate payment can make a meaningful difference when timing is critical.

3. How does your trade finance process work?

Trade finance is an umbrella term covering products such as letters of credit, guarantees, supplier finance and invoice discounting. Each serves a different purpose, but together they help businesses manage payment risk, improve cash flow and build confidence between trading partners.

The question isn’t simply whether your bank offers these products. Most commercial banks do.

The better question is how their process works.

Ask your bank to explain:

• Which trade finance products are appropriate for your type of business
• What documentation will be required
• What financial information forms part of the credit assessment
• How the end-to-end process works from application to issuance

Understanding these requirements before you begin can help prevent unnecessary delays when an opportunity arises.

The value of trade finance lies not only in access to finance, but in structuring transactions in a way that reduces risk for everyone involved.

4. Who picks up the phone when something goes wrong?

Cross-border trade involves multiple parties, regulatory environments and payment systems. Occasionally, transactions require additional verification or documentation before they can proceed.

When that happens, having access to someone who understands your business becomes invaluable.

Ask:

• Who will be my relationship manager?
• Do they have experience supporting cross-border businesses?
• Is there a dedicated trade finance or foreign exchange specialist?

For businesses operating across borders, responsive support is more than a convenience. It can help reduce uncertainty and keep transactions moving when timing matters.

5. What do you know about this market beyond banking?

One of the greatest advantages a pan-African bank can offer isn’t simply moving money between countries.

It’s knowledge.

Banks operating across multiple African markets develop insights into trade flows, sector activity, payment behaviour and local business environments. Those insights can help businesses make better expansion decisions.

Ask what your bank can tell you about the market you’re entering.

For example:

• Which sectors are experiencing growth?
• What are common payment terms?
• Are there regulatory considerations for foreign-owned businesses?
• What does the local business environment look like?
• Which industry associations or business networks are worth joining?

Also ask whether they facilitate introductions.

A bank with relationships across multiple markets may be able to introduce clients to distributors, suppliers or other businesses already operating within its network.

The answer to this question often reveals the nature of the relationship.

A bank that can only discuss products is a supplier.

A bank that can discuss markets, opportunities and business growth is a strategic partner.

The five questions at a glance

Before you go

Africa presents significant opportunities for South African businesses looking to expand beyond their borders. Success, however, depends on more than identifying the right market. It requires careful planning, a clear understanding of how money will move, how trade will be financed and who will support your business when challenges arise.

Before you commit capital, ask these five questions.

Start with your current bank. If the answers aren’t clear, ask another one.

Expanding into Africa requires more than access to banking products. It requires a banking partner with regional expertise, local market presence and the ability to support businesses as they navigate cross-border trade.

Access Bank combines a pan-African network with trade finance, foreign exchange capabilities and relationship banking to help South African businesses expand with confidence.

Speak to the Access Bank South Africa Business Banking team to discuss your expansion plans.

Get Access to your next market.