SA Fintech high dives into Zimbabwe remittance stream
Eight-year-old South African Fintech Mama Money has announced a partnership with Zimbabwe’s AFC Commercial Bank, effectively connecting to the Bank’s customer base inclusive of 45 cash collection points.
In a statement released to the media, Mama Money said it is estimated that the monthly remittance flows from South Africa to Zimbabwe range between US$30 to US$60 million, through both formal and informal channels – and this accounts for over 10% of the country’s GDP, according to the World Bank.
The volume of business is evident, but cost is a barrier. This is where Mama Money is looking to exert its influence.
The company says the cost of sending money to Zimbabwe “can significantly reduce the impact that remittances have as these funds are predominantly used for critical needs such as school fees, healthcare, and housing.”
According to Mama Money, when it launched in 2015, the average cost of sending money from South Africa was 14%.
“Today, the average cost of sending money from South Africa is 7%, which is much closer to the worldwide average of 6%,” it stated.
Nicolas Vonthron, CEO at Mama Money said, “We have made a lot of progress in bringing down the cost of money transfers, but there is still more we can do to support the Zimbabwean community in South Africa. We want to reduce the cost even further and offer a super reliable service. Our partnership with AFC Commercial Bank will help us achieve this and we’re extremely excited to see the impact this will have for people who need an easier way to send money to Zimbabwe.”
Ken Chitando, Managing Director at AFC Commercial bank added, “With our extensive network in Zimbabwe, it is very easy and convenient for recipients to collect their cash no matter where they are in the country, and we are continuously expanding our network. We are confident that this relationship will add convenience to all our customers as we expand our financial services countrywide.”