Cross-border business is booming — but currency risk can catch firms off guard
Cross-border business is booming — but currency risk can catch firms off guard
Cross-border business is booming — but currency risk can catch firms off guard
Gary Oberholzer
Cross-border business is booming — but currency risk can catch firms off guard
Law firms and accounting practices are increasingly helping their clients navigate international business — from companies expanding into Africa to businesses paying overseas suppliers or working with foreign shareholders.
But when money moves across borders, the risks multiply.
Exchange rates can shift suddenly, regulatory requirements differ from country to country, and settlement deadlines are often tight. For the lawyers and accountants guiding these transactions, managing these moving parts has become essential — not only to protect their clients’ financial outcomes, but also their own professional reputation.
Speaking on HOT Business with Jeremy Maggs, Fikile Kgobe, Head of Business & Commercial Banking: Global Markets at Standard Bank, says cross-border work is becoming increasingly common for mid-sized law and accounting firms.
“We are seeing more legal and accounting firms doing complex transactions,” Kgobe explains. “Whether it’s Africa expansion, international suppliers, or global partnerships, firms increasingly need simple solutions to navigate that complexity.”
Globalisation has opened new opportunities for many professional advisers. Firms that once focused mainly on domestic clients are now helping businesses operate across borders — within Africa and beyond.
But with those opportunities come challenges, particularly around foreign exchange risk.
Currency fluctuations can change the value of a transaction quickly. If those movements aren’t planned for in advance, they can eat into margins or create unexpected costs for clients.
“The key question is whether firms plan ahead,” Kgobe says. “Foreign exchange risk can be managed, but it requires the right guidance, tools and market insight.”
Better currency planning can also help firms provide greater certainty to their clients — something that is increasingly important when transactions involve multiple countries and tight deadlines.
“Predictability means knowing upfront what your costs are going to be,” Kgobe explains. “That allows firms to communicate clearly with their clients and protect the margins they are working with.”
Listen to the full interview on HOT Business with Jeremy Maggs below:
Standard Bank says it helps address these challenges by combining relationship banking with specialist global markets expertise. In practice, this means relationship managers work alongside foreign exchange specialists to guide firms through the risks and regulatory requirements involved in cross-border payments.
“It’s a combination of people and technology,” Kgobe says. “Your relationship manager brings in the specialists who can provide market insights and help clients understand what risks may affect their transaction.”
Speed is also critical. Many international deals operate under tight timelines, and payments must be executed efficiently while still complying with regulatory requirements, including reporting obligations to the South African Reserve Bank.
Digital tools, combined with specialist support, help simplify these processes so firms can complete transactions with greater confidence.
Clear communication is another key factor. Many mid-tier firms do not see themselves as foreign exchange specialists, which means complex financial jargon can create confusion.
“One of our priorities is translating market insight into plain language,” Kgobe says. “When we leave a conversation with a client, they should know exactly what to do, how to do it, and when to do it.”
By bringing together foreign exchange expertise, cross-border payment support and practical guidance, Standard Bank aims to help law and accounting firms navigate an increasingly global business environment — with fewer surprises along the way.
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