A remittances-focused partnership has been announced that could see the expansion of M-Pesa, the continent’s leading mobile money and digital payments service, to West Africa.
The collaboration, aimed at broadening access to remittances across Africa, has been forged among African financial services company Coronation Group, multinational financial services group Access Holdings, service provider Safaricom and M-Pesa Africa. These companies say they have formed a strategic alliance to propel financial inclusion across the continent.
The parties say they aim to explore solutions that will provide a remittance corridor between East and West Africa, connecting some of the continent’s largest economies.
The collaboration will see the convergence of Access Holdings’ robust pan-African banking infrastructure, spanning 14 African countries, with Coronation Group’s comprehensive array of technology-infused financial services offerings in West Africa, coupled with M-Pesa and Safaricom.
The initial phase of the collaboration will concentrate on pivotal markets, including Nigeria, Kenya, Ghana and Tanzania. The collaboration is subject to commercial discussions and definitive agreements, internal corporate approvals of the respective parties and relevant legal and regulatory processes.
While the remittance market is an important one, Peter Ndegwa, CEO of Safaricom, notes: “Africa remains an underserved region, especially for remittances within the continent, making such partnerships crucial in closing the gap.”
