Mama Money banks on TNM to expand service in Malawi
South Africa-based Fintech Mama Money has formed an alliance with Malawian telecommunications and mobile money operator TNM to roll out services in the country.
Mama Money customers will be able to send money to any TNM Mpamba account for cash collection at over 40,000 locations across Malawi.
Research by Finmark Trust estimates that the monthly remittance flows from South Africa to Malawi are over US$20-million through both formal and informal channels.
Beyond the impact on economic growth, remittances are crucial for supporting fundamental needs such as healthcare, housing and education. Yet South Africa is one of the most expensive countries to send money from.
In 2015 the average cost of sending money from South Africa was 14%. This is the same year that Mama Money launched with a fee of just 5%. Today, the average cost of sending money from South Africa is 7%, which is much closer to the worldwide average of 6%.
Mama Money facilitates money transfers to over 50 countries across Africa, Asia and Europe. The Fintech’s key markets for money transfers include Zimbabwe, Malawi, Mozambique, Ghana, Uganda, Nigeria, India, Bangladesh, and Pakistan.
It also offers banking services and money transfers to South Africa from Europe and other regions.
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 Malawian community in South Africa. We want to reduce the cost even further and offer a super reliable service. Our partnership with TNM 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 Malawi.”
Christopher Sukasuka, General Manager at TNM Mpamba Limited added that, “With our Mpamba network covering over 90% of Malawi, it makes it extremely easy and convenient for people to collect their cash no matter where they are in the country, and we are continuously expanding our network and agent coverage.”
Alliance in Zimbabwe
In January this year Mama Money announced a partnership with Zimbabwe’s AFC Commercial Bank.
The Fintech stated that the estimated monthly remittance flows from South Africa to Zimbabwe range between US$30 and 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.