Remittance inflows to Africa are expected to top $55 billion this year. But Africa is the most costly region in the world for inbound money transfers – $200 transfers incur fees of almost 8%, on average.
Ghana’s Zeepay is simplifying the process for sending money across borders by linking international money transfer services like Visa, MoneyGram, Remitly, Ria and Transfast to mobile wallets and bank accounts in Africa and the Caribbean. The company also offers services like remittance insurance and payment services for refugees.
Altogether it has facilitated over $3 billion in transactions in more than 20 countries.
ZeePay raised $14 million in equity funding, led by Oikocredit and Africa50. Remittances play a critical role in financial security and inclusion for many African and Caribbean households, said Oikocredit’s Samuel Kibiri.
“Foreign currency inflows from remittances are the lifeline for many African economies with sizable diaspora populations, especially in the current economic environment,” said Raza Hasnani of Africa50. The infrastructure investor backed Zeepay as a “digital infrastructure” investment.
Ghanaian fund manager Injaro Investments, I&P and Verdant Capital also invested in the round.
Injaro, which last year closed its fund with backing from Ghanaian pension funds and insurance companies, said its investment in Zeepay “represents an important first step in building linkages between Ghana’s pension funds and exceptional local businesses, which are important drivers of Ghana’s economic growth.”
