How LAN Reduces Cross-Border Trade Costs

One Africa, One Coin, Zero Friction

Africa’s 55 countries share more than borders—they share a US$ 3 trillion market waiting to be unlocked. Yet today, only 12% of African trade happens between African nations, compared to 67% in Europe and 60% in Asia. The biggest culprit? Currency fragmentation.

Every time a container leaves Accra for Lagos, or a payment travels from Nairobi to Dakar, merchants lose 3%–7% in foreign-exchange spreads, bank fees, and settlement delays. LAN (AlkebuLAN’s Money) was built to remove these costs—permanently. Here is how:

How LAN Reduces Cross-Border Trade Costs

1. Single Unit of Account = No FX Spreads

When both the exporter and importer price goods in LAN, there are no buy-sell spreads, no parallel-market premium, and no double conversion (local currency → USD → local currency). For example, a Ghanaian cashew exporter selling to a Moroccan roaster saves 2.4% that would otherwise be lost to the USD/GHS and USD/MAD spread.

2. 30-Second Settlements vs. 2–5 Days

Traditional correspondent banking uses 3–5 intermediary banks, each taking a fee and a day. LAN runs on the Stellar blockchain (and BEP-20 for DeFi liquidity), settling in <30 seconds for 0.00001 LAN (≈ US$ 0.0002). Result: Working-capital cycles shrink, inventory financing drops, and per-shipment finance costs fall by 30%.

3. Zero-Fee Trading Until 2026

The forthcoming AlkebuLAN Exchange will charge 0% trading fees for LAN pairs until Q1 2026, eliminating the 25–50 bps brokers normally embed in cross-border invoices.

4. Locked Liquidity = Stable Rates

100% of LAN liquidity is locked until 2033, removing the sudden currency swings that force African importers to pre-buy USD weeks in advance and tie up precious capital.

5. Borderless Wallet Infrastructure

Whether you use Lobstr, Trust Wallet, or MetaMask, the same LAN address works in all 55 countries. No SWIFT codes, no nostro accounts, no US$ 25 wire fees—just scan a QR code and send.

6. Smart-Invoice Tools for SMEs

Our open-source LAN Pay-Plugin (release July 2024) lets Terra, Shopify, WooCommerce, and PrestaShop merchants price in LAN. Buyers pay in LAN; sellers receive LAN—no middleware, no FX, no surprises.

7. AfCFTA-Ready Compliance

LAN’s KYC/AML layer is built on Stellar’s SEP-24 and FATF Travel Rule, so shipments cleared under the African Continental Free Trade Area (AfCFTA) can be financed and insured in LAN without duplicate documentation.

Bottom-Line Impact: How Much Money Can African Businesses Save?

By switching to LAN, African businesses stand to save significantly on cross-border trade costs. Here’s a breakdown of the savings:

Cost Component	Legacy Route	LAN Route	Saving
FX spread	2.0–3.5%	0%	100%
Bank fees	0.5–1%	0%	100%
Settlement delay	2–5 days	30 sec	99%
Currency-hedge premium	0.8–1.2%	0%	100%
Total saving	3.3–5.7%	0%	100%

On a US$ 50,000 invoice, that’s US$ 1,650–2,850 staying in the pockets of African businesses—money that can be reinvested in machinery, staff, and scale.

Join the Zero-Cost Trade Movement

Download Lobstr or Trust Wallet → add LAN → start invoicing in Africa’s currency. No FX, no waiting, no middle-men—just prosperity, peer-to-peer.

One Africa. One Coin. Zero trade-costs.

Welcome to LAN, the future of Pan-African finance.