M-PESA taps into West Africa’s remittance flow
A new alliance comprising of Coronation Group, Access Holdings Plc, Safaricom Plc and M-PESA Africa is poised to enhance financial inclusion and remittance flows across the East and West Africa trade corridors.
The agreement, which is subject to relevant legal and regulatory approvals, is expected to nurture economic prosperity for millions across the continent while broadening access to remittances across Africa.
“We will be collaborating with M-PESA Africa, Coronation Group and Access Holdings to explore secure, convenient, and affordable remittance solutions that will connect our customers to opportunities in West Africa,” said Peter Ndegwa, CEO of Safaricom.
“Africa remains an underserved region, especially for remittances within the continent making such partnerships crucial in closing the gap,” added Mr Ndegwa.
The initial phase of the collaboration will target Africa’s biggest economy Nigeria, East Africa’s economic powerhouse Kenya, as well as Ghana, and Tanzania.
Parties aim to explore financial services that can provide a remittance corridor between East and West Africa, effectively bringing closer some of the continent’s largest economies.
Technology-infused financial services
The collaboration will see the convergence of Access Holdings’ Pan-African banking infrastructure, spanning 14 African countries, with Coronation Group’s array of technology-infused financial services offerings in West Africa, coupled with M-PESA and Safaricom.
M-PESA is the continent’s leading mobile money and digital payments service, connecting over 60 million customers and 5 million businesses across 8 countries and processing more than $1 billion a day in transaction value.
Telco giant Safaricom boasts 32 million customers who use M-PESA services every month.
Aigboje Aig-Imoukhuede, Chairman of Access Holdings and Coronation Group, noted: “We stand at the threshold of an extraordinary journey, one poised to shape the financial landscape of Africa.
“This partnership encompasses more than a convergence of capabilities; it signifies the fusion of collective expertise, resources, and an unwavering commitment to drive financial inclusion, empowering millions throughout Africa.
Through collaborative innovation, shared vision, and resolute determination, we are primed to unlock unprecedented opportunities, transform lives, and make an indelible imprint on Africa’s trajectory,” Mr. Aig-Imoukhuede added.
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Lack of intra-continental trade
Sharing insights into the transformative potential of the collaboration, Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc, affirmed, “Our conviction remains steadfast – this collaboration has the power to recalibrate the trajectory of financial services in Africa.”
“African countries trade more with nations outside the continent than within themselves. Initiatives such as the African Continental Free Trade Area (AfCFTA) seek to address the lack of intra-continental trade. This partnership with Safaricom, Coronation Group and Access Holdings seeks to explore remittance corridors between East and West Africa bringing alive the AfCFTA spirit,” said Sitoyo Lopokoiyit, MD, M-PESA Africa.
The collaboration is subject to commercial discussions and definitive agreements, internal corporate approvals of the respective parties and relevant legal and regulatory processes.
