Africa: The Untapped Goldmine for Forex Companies

The forex industry is shifting its focus toward emerging markets and Africa is right at the center of that shift.What was once seen as a risky or “unready” market has quietly turned into one of the fastest-growing forex regions in the world.

Between mobile money, youthful populations, and digital-first behavior, Africa’s conditions for retail trading are not just good they’re ideal.

The Numbers Don’t Lie

Africa now has over 1.3 million active forex traders, with trading activity concentrated in a few key markets:

• South Africa – Around 190,000 traders with an average daily trading volume above $2 billion. The country has mature financial infrastructure, well-regulated brokers, and a growing appetite for CFDs and online trading.

• Nigeria – With a population of over 220 million, Nigeria is becoming Africa’s largest potential forex hub. Most traders are under 35 and access global markets via mobile apps. The total trading volume is estimated in the billions of dollars per month, though still informal due to limited regulation.

• Kenya – Around 50,000 traders and a monthly volume between $4–5 billion. Kenya’s Capital Markets Authority (CMA) was one of the first to license local forex brokers in East Africa.

• Egypt and Morocco – Both have strong middle-class populations and rising internet penetration. Arabic-speaking traders here often use global brokers that operate under EU or offshore licenses.

• Ghana, Uganda, and Tanzania – Smaller but fast-emerging markets, driven mainly by mobile money access and online financial education.

Collectively, Africa’s forex trading volumes are now estimated at over $100 billion per month, when combining both formal and informal activity.

Why Africa Is So Attractive Right Now

1. A young, connected population: Over 70% of Africans are under 35. They’re digital-native, mobile-first, and open to trying new financial platforms. Most forex accounts in Africa are opened via mobile phones not desktop computers.

2. Explosive smartphone and internet growth: Africa now has more than 500 million smartphone users and counting. Data is cheaper, and brokers can reach traders directly through mobile apps, WhatsApp, and social platforms.

3. Mobile money dominance: Unlike other regions that rely on Visa or Mastercard, Africa runs on mobile money. In Kenya, Uganda, Ghana, and Rwanda, mobile money is the main financial rail. This makes local payment integration essential. Without it, brokers lose 80% of potential deposits.

4. A strong appetite for alternative income: Youth unemployment is high, and forex trading offers a sense of independence and financial opportunity. Combine this with social media influencers promoting trading success stories, and you have a massive, self-propelled trend.

5. First-mover advantage: The big brokers have already noticed. XM has been running educational events across Africa, from South Africa to Nigeria. FxPro, Exness, and Deriv have all localized their operations to reach African traders.But the field is still wide open. Many smaller or regional brokers have yet to establish a real local presence.

The Challenges and How to Navigate Them

Africa’s promise comes with complexity. You can’t treat the continent as one homogenous market. Each country has its own regulators, payment systems, and customer behavior.

Here’s what every forex company should consider before expanding — based on insights from Elemitech’s report on forex expansion into Africa:

1. Regulation: There’s no single regulatory body for Africa. South Africa’s FSCA and Kenya’s CMA are well-established, but other countries are still catching up.Many global brokers operate under offshore licenses (like Mauritius or Seychelles) while using local partners for marketing and support.If you plan to operate long-term, align with at least one credible regulator to build trust.

2. Local payments: Mobile money is non-negotiable. You’ll need integrations for M-Pesa (Kenya, Tanzania), MTN Mobile Money (Uganda, Ghana, Rwanda), and Airtel Money across multiple markets.Working with a payments partner like Elemitech, which connects brokers to mobile money and local bank rails, saves months of setup and compliance effort.

3. Customer onboarding (KYC):Many traders don’t have utility bills or international ID cards. Simplify KYC while staying compliant — for example, allowing national IDs, NINs, or digital verification.

4. Education and support:Forex literacy is still developing in most African countries. Offer webinars, demo accounts, and WhatsApp-based support in local languages. This builds trust and loyalty.

5. Local marketing: Traditional advertising doesn’t work here. Word-of-mouth and influencer partnerships do. Leverage introducing brokers (IBs), affiliate marketers, and WhatsApp groups to reach traders faster and cheaper.

6. Currency and settlement risks: Funds often move through local banks and mobile wallets before reaching dollar or euro accounts. Delays and FX conversion costs can eat into your margins. Use partners that provide weekly or instant settlement in USD or USDT.

7. Trust and brand perception: Scams are common in the forex space, so credibility is everything. Be transparent, showcase regulation, and invest in a visible local presence even if it’s a small office or education center.

How to Approach the Market Strategically

If you’re serious about expanding into Africa, start focused instead of going wide.

Step 1: Choose a pilot country: South Africa and Kenya are great for testing operations strong infrastructure, supportive regulation, and clear demand.

Step 2: Integrate payments: Use a single API or payment gateway that supports collections and payouts in multiple countries — something Elemitech already provides for forex and trading companies.

Step 3: Localize onboarding and support: Traders should be able to sign up, deposit, and get support without needing a foreign document or calling an overseas number.

Step 4: Build a partner network: Recruit IBs, content creators, and trading mentors to promote your brand. Africans trust people they know, not faceless ads.

Step 5: Optimize and scale: Track deposits, average trading volume, and customer lifetime value. Once you find what works in one country, expand the same model across neighboring ones.

The Bottom Line

Africa isn’t a “future opportunity” anymore it’s a current one.The traders are there. The infrastructure is there. The appetite for online trading is stronger than ever.

The only real question is who will move fastest and execute best.

Brokers that understand local payments, speak the local language, and build real relationships will dominate Africa’s next forex wave. Those that wait for the market to “mature” will watch from the sidelines as others take the lead.