The real cost of paying employees and contractors in Africa in 2027: a benchmark for finance teams
Across wires, platforms and in-country payroll agents, what does a North American or European company actually pay per US$1,000 to get money to staff in Africa? A practical benchmark, with the levers that move it.
Finance leads budgeting for 2027 keep asking for a single number: what does it cost, all-in, per US$1,000, to pay someone in Africa? There is no single number, but there is a range, and the range depends on four things you control.
The benchmark
| Method | Typical all-in cost per $1,000 | Speed | Notes |
|---|---|---|---|
| Bank wire | $50–$70 | 3–5 business days | Fees at both ends plus an unpublished spread; worst for many small payments |
| Retail transfer app | $25–$45 | 1–3 days | Better rates; patchy African coverage; no mobile money in most markets |
| In-country payroll agent / EOR | $40–$60 + fixed fee per head | Monthly cycle | Handles employment compliance; expensive for contractors and suppliers |
| Storspay | $20 | Same business day | 2% all-in at mid-market; bank and mobile money; 20 African corridors |
The four levers
- Rate transparency. The spread is the largest hidden cost. Anything that does not show you a mid-market rate before you confirm is charging one.
- Number of payments. Per-wire fees punish teams of many small salaries. Batch products charge on volume, not count.
- Channel. Mobile money is cheaper and faster for people than bank transfer in most of Africa; bank is right for companies and large amounts. A product that supports both, and picks per payment, saves on both.
- Funding currency. Canadian, British and European companies paying in USD are converting twice. Funding directly in CAD, GBP or EUR removes a conversion.
What it looks like at scale
A company paying US$50,000 a month to a team across Nigeria, Kenya, Ghana and Senegal spends roughly $30,000–$42,000 a year on wires. On Storspay it spends $12,000. The difference is a hire.
What this benchmark does not cover
Employment law, payroll tax and benefits in each country — those are questions for an employer-of-record or local counsel, and Storspay does not replace either. Storspay moves the money; it does not decide who is an employee.
Put your own monthly volume into the calculator for the exact figure per corridor.
Who this is for — and who it is not for
Storspay is for businesses, and a sole trader counts as one. If you are a freelancer or sole proprietor trading in your own name, you open a business account of the sole-trader type. You can be paid by companies abroad, and you can pay other businesses on Storspay — including other sole traders — for work they have done for you.
What Storspay is not is a personal money-transfer service. We do not open personal accounts, and every payment has to be a business transaction: an invoice, a contract, work delivered. Money to family, gifts and personal transfers are not what this is, and we would rather say so now than at verification.
See your own corridor number. What your team receives, what Storspay costs, what you keep — no sign-up.
Open the calculator →