Mama Money, a South African fintech that offers cross-border money transfer and banking services, has partnered with Zimbabwe’s AFC Commercial Bank, effectively connecting to the bank’s customer base, which includes 45 cash collection points.
The monthly remittance flows from South Africa to Zimbabwe range from US$30 to US$60 million through both formal and informal channels, and they account for over 10% of the country’s GDP, according to the World Bank.
The capacity of the business is evident, but 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%, but “today, the average cost of sending money from South Africa is 7%, which is much closer to the worldwide average of 6%,” the company stated.
Mama Money facilitates money transfers to over 50 countries across Africa, Asia and Europe. It also offers banking services and money transfers to South Africa from Europe and other regions. Mama Money is one of the fastest-growing money transfer operators, with over 720,000 users.
