A South African fintech startup, Mama Money, has reached a wide ranging partnership with Zimbabwea’s major bank, AFC Commercial Bank, to allow its customers to easily send money to any of the bank’s branch for cash collection at 45 locations across the southern African country.
The fintech which offers cross-border money transfer and banking services, is estimated to have a monthly remittance flow from South Africa to Zimbabwe between $30 to $60 million through both formal and informal channels and accounts for over 10% of the country’s GDP according to the World Bank.
According to Nicolas Vonthron, CEO, Mama Money, with the platform, 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.
“Mama Money has played a leading role in reducing the cost of money transfers from South Africa when the company started the business to make a positive impact on the lives of underserved migrant communities in South Africa.
“Mama Money facilitates money transfers to over 50 countries across Africa, Asia and Europe.
“Our key markets for money transfers include Zimbabwe, Malawi, Mozambique, Ghana, Uganda, Nigeria, India, Bangladesh, and Pakistan.
“Together, Mama Money and AFC Commercial Bank are improving access to critical financial services in underserved communities in both South Africa and Zimbabwe by making it easier, faster, and more affordable to send and receive money,” he added.