By Everson Luhanga
- Many companies registered in the United States but working in Africa are having their bank accounts blocked by global banks.
- Financial company Verto has launched a new United States dollar account to help these businesses pay their workers on time.
South African business owners who are trying to grow their companies overseas are facing a major problem with global banks. Many say banks are blocking or closing their accounts.
These affected companies are registered in the United States but still do their daily work in Africa. They need to pay workers, suppliers and partners across different borders every day.
Strict global banking rules are now making this process much harder. Some businesses are dealing with frozen accounts, delayed payments or sudden bank closures.
This causes major problems for their daily operations. It also pushes up costs because companies have to find other ways to move their money.
Verto chief executive Ola Oyetayo said banks are treating many of these businesses as a high risk. He said this happens simply because the companies operate across different countries.
This creates massive pressure for founders who are trying to grow their businesses. They have to manage their cash flow while dealing with banking systems they cannot rely on.
When payments are delayed, workers and suppliers get their money late. This causes deep problems for households that depend on a steady income to survive.
To fix this problem, Verto has introduced new United States dollar bank accounts. The accounts allow businesses to receive payments and move money more easily.
The company said this reduces the need for businesses to use multiple payment platforms. It also helps them pay salaries and suppliers without any delays.
Verto supports payments across many currencies and countries. The company focuses on helping businesses that work between the United States and Africa.
Experts say these banking problems will likely get worse as banks become more careful. Access to a reliable bank is now the key to survival for many South African startups.
Pictured above: A man waiting at an ATM.
Image source: Pexels
