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Remittance Services in Africa: What Businesses Need to Know

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Remittances represent a major source of financial inflow for African countries. The United Nations identifies remittances as a vital lifeline for more than 200 million Africans. It notes that beyond supporting the lives and livelihoods of families in the senders’ countries of origin, remittances or cash transfers represent solidarity and symbolise the generosity and resilience of the African community on the continent and beyond.

In 2023, remittances in Africa reached almost $100 billion, equalling nearly 6 per cent of the continent’s Gross Domestic Product (GDP) and exceeding Foreign Direct Investment (FDI) figure of $48 billion.

Within Sub-Saharan Africa, key markets for remittances are Nigeria, Kenya, Ghana and South Africa, with Nigeria alone receiving nearly half of all Sub-Saharan Africa’s remittances.

Remittance services are crucial for efficient international transactions, particularly for business involved in cross border operations. Remittance services facilitate the transfer of money from individuals and organisations to recipients in another country, playing a key role in Africa’s GDP growth and overall economic landscape.

Africa’s entrepreneurial sector and digital economy continue to expand rapidly. As such, the importance of efficient and reliable remittance services is increasing. For businesses looking to engage in cross-border trade, pay remote employees or manage international vendor relationships, understanding the dynamics of Africa’s remittance market is essential.

Current Landscape of Remittances in Africa

Africa is one of the largest recipients of remittances globally, with billions of dollars sent home each year by the African diaspora and businesses engaged in international operations. These remittances have significantly assisted in funding entrepreneurial ventures and stimulating regional economic growth.

However, the cost of digital remittances remains high, particularly in Africa. Research indicates that in 2023, the average cost of sending money through mobile applications to Africa was around 5 per cent, although it was lower in West Africa, at approximately 3 per cent.

The rise of digital technology, especially, is revolutionising traditional remittance channels like bank transfers and money transfer operators. Digital wallets, mobile money platforms, and blockchain-based solutions are emerging, making remittances faster, more accessible, and more affordable for businesses.

Who Are the Key Players in the African Remittance Space?

The African remittance landscape is populated by a variety of service providers, each bringing unique strengths to the market. From traditional money transfer operators to cutting-edge fintech platforms, businesses have a wide range of options to choose from.

Here are some of the leading players.

SeerBit

SeerBit is a Pan-African payment solutions provider dedicated to empowering SMEs and enterprise businesses by addressing barriers such as payment fragmentation and access to cutting-edge financial products, including remittance services. Known for its innovation and commitment to making payments simple, SeerBit ensures every business has the tools to serve their customers efficiently and scale their enterprise for growth.

Western Union

Western Union is a long-standing player in the global remittance market and maintains a strong presence in Africa. Known for its extensive network of physical locations, it offers reliable services even in rural areas, particularly where banking infrastructure may be limited.

WorldRemit

WorldRemit is a digital-first remittance provider, focused on simplifying the remittance process through its mobile and web platforms. It has gained popularity in Africa for its speed, convenience and lower fees compared to traditional players.

Sendwave

Sendwave specialises in mobile-based remittance services, focusing on low-cost, fast transactions primarily to African countries. It has become a preferred choice for the African diaspora due to its competitive fees and efficient service.

Flutterwave

Flutterwave is a leading African fintech company offering comprehensive financial solutions, including remittance services. It partners with global players like PayPal and Alipay to facilitate cross-border payments, making it a strong contender for businesses.

Challenges in Africa’s Remittance Market

Despite the growth and innovation in the African remittance space, several challenges persist:

Regulatory Issues: Strict regulations, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, can make onboarding clients a long and complex process. In some countries, foreign exchange controls and restrictions on cross-border transactions add another layer of complexity.

High Fees: While digital solutions are driving down costs, traditional remittance services are still notorious for high fees. For businesses sending large sums or handling frequent transactions, these costs can accumulate and affect their bottom line.

Slow Processing Times: Traditional channels can take days for funds to reach recipients, which can hinder business efficiency, especially when dealing with urgent payments.

Accessibility in Rural Areas: In regions with poor banking infrastructure, access to remittance services can be limited. Digital platforms are bridging the gap, but there are still challenges in reaching remote locations.

Banking and Infrastructural Limitations: Inconsistent infrastructure, unreliable internet, and limited banking networks in some areas can slow down or complicate the remittance process, particularly for businesses operating in multiple countries.

Opportunities for Businesses Using Remittance Services

For businesses operating in or with Africa, remittance services such as those provided by SeerBit offer several strategic opportunities:

Cross-Border Transactions: Remittance services simplify cross-border payments for businesses dealing with international clients or suppliers. This can include paying for goods and services, settling vendor invoices or transferring funds between subsidiaries in different countries.

Payroll for Remote Teams: With the rise of remote work, companies are increasingly using remittance services to pay international employees and freelancers. This approach enables businesses to hire top talent from different parts of Africa without facing payroll complications.

Vendor Payments: Efficient remittance services ensure timely and reliable payments, allowing businesses to maintain strong relationships with suppliers.

Regulatory Considerations for Businesses

Operating in Africa’s remittance market requires a keen understanding of the regulatory environment. Here are some of the critical factors businesses must consider:

Central Bank Regulations: Each country has its regulatory framework, often overseen by central banks, that governs remittance services. Companies must comply with local laws and guidelines related to cross-border payments, exchange rate management and transaction reporting.

AML and KYC Compliance: To combat fraud and financial crime, businesses must adhere to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. These measures are designed to ensure the transparency and security of remittance services, though they can be resource-intensive.

Currency Exchange: Many African countries experience significant fluctuations in exchange rates. Companies need strategies to manage currency risks, such as hedging or using digital currency solutions that offer more stability.

To navigate these complexities, businesses should partner with experienced payment providers that have a strong track record in compliance and risk management.

What is the Future of Remittance Services in Africa?

The future of remittance services in Africa will be shaped by several trends.

Increased Fintech Investments: The rise in fintech investments is fuelling the development of innovative payment solutions that cater to the unique needs of African businesses. More startups are entering the market with niche offerings, targeting specific pain points like fee reduction and transaction speed.

Blockchain and Digital Currencies: Blockchain technology and the introduction of digital currencies are poised to make remittances faster, cheaper and more secure. Some companies are already using blockchain to bypass traditional banking networks, reducing costs and increasing transparency.

Integration with Business Ecosystems: Future remittance services are expected to integrate more seamlessly with other business tools, such as Enterprise Resource Planning (ERP) systems, accounting software and e-commerce platforms. This will provide businesses with more streamlined financial operations.

Businesses that stay ahead of these trends and adapt their strategies will be well-positioned to benefit from the evolving remittance landscape in Africa.

The continent’s remittance market is both dynamic and challenging, with numerous opportunities for growth. In a rapidly globalising economy, businesses cannot afford to overlook the significance of having a clear African strategy for remittance services. Understanding the current landscape, key players and the regulatory environment remain essential factors to guide informed decisions that enhance their financial operations.

Businesses can finetune their African strategy by exploring partnerships with trusted remittance services providers that align with their specific cross-border needs, ensuring they remain competitive in an increasingly digital and interconnected world.

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Onafriq, PAPSS Launch Wallet-Based Payments Pilot from Nigeria to Ghana

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Onafriq Nigeria Payments Ltd, a CBN licenced payment service provider, partners with The Pan-African Payment and Settlement System (PAPSS) to pilot the continent’s first wallet-based outbound payments from Nigeria to Ghana – fully in Naira and instant, without relying on hard currency conversion, in partnership with Banks and Mobile Money Operators.

Onafriq, PAPSS Launch Wallet-Based Payments Pilot from Nigeria to Ghana

The pilot service, approved by the Central Bank of Nigeria (CBN), enables cross-border intra-Africa payments for individuals, merchants, and traders.

In particular, the service will benefit SMEs, the real engine of intra-African trade; all now have access to a faster, cheaper way to reach customers and suppliers across the border.

By reducing barriers to cross-border trade, the new service will allow these businesses to grow their addressable markets and activity. From the 1st of December, this service will be fully operational for a 6-month period.

Through the partnership with PAPSS, Onafriq is supporting the operationalization of the AfCFTA (Africa Continental Free Trade Area) mandate.

The mandate itself is driving tariff-free trade for the 54 member states of AfCFTA. Within the partnership itself, Onafriq provides the mobile money rails, with an ecosystem consisting of over 1 billion mobile wallets.

Meanwhile, PAPSS brings a network of over 160 commercial banks, representing an ecosystem of more than 400 million bank accounts across its 19 African countries of operation.

The two partners are essentially seamlessly connecting two worlds: mobile money and banking. As a consequence, intra-African trade transactions will take place more easily and opportunities will be created.

Currently, Africa is made up of bank and mobile-led markets, with siloes often inhibiting transactions between these economies. However, this partnership will remove these boundaries. With over one billion mobile wallets and 500 million bank wallets across Africa, this partnership will allow for cross-border collaboration at scale.

This partnership builds on Onafriq and PAPSS’ existing partnership for payments into Ghana, announced earlier this year.

Mxolisi Msutwana, Managing Director Anglophone West Africa said, “Our work with PAPSS shows what collaboration at scale can unlock—seamless, secure connections between banking systems and mobile money ecosystems.

“This is how we open bi-directional trade corridors, reduce costs for businesses, and give African enterprises the rails they need to trade with confidence in their own currencies. The vision is continental, but it starts with practical steps like this one.”

Ositadimma Ugwu, Chief Information Officer, PAPSS, added “Too often, African businesses and individuals see borders as roadblocks instead of opportunities. With this step, we’re challenging that mindset, giving Nigerians the ability to send value next door with the same ease as sending a text message.

“Our vision is simple: make Africa’s borders invisible to payments. This pilot makes that a reality, moving us closer to a continent where payments don’t pause at the border.”

This new Nigeria-to-Ghana outbound capability builds on the successful Ghana-to-Nigeria instant payments corridor launched earlier this year – further proof that Africa’s payments future is local, instant, and inclusive.


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MTN Powers 6,000 Young SMEs with Digital Skills in Economic Backbone Boost

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MTN Foundation has kicked off the year with its five-week Digital Skills Training programme, upskilling 6,000 young Nigerians. The programme, which is in its fifth week commenced in January 2026.

MTN Powers 6,000 Young SMEs with Digital Skills in Economic Backbone Boost

MTN

The seventh phase of the project is focused on supporting Nigeria’s microbusiness to embrace digital transformation, at a time when SMEs remain the backbone of the Nigerian economy.

According to the National Bureau of Statistics (NBS), SMEs account for over 90 per cent of businesses in Nigeria and employ a significant portion of the country’s workforce, underscoring the importance of initiatives that strengthen their productivity and sustainability.

Following a one-month call for applications in September 2025, which saw almost 64,000 entries from Nigerians between the ages of 18 and 35, the 6,000 selected microbusiness owners have embarked on a five-week training that will end in February 2026.

The virtual training programme began with a general onboarding session that brought together participants across four business tracks and set the foundation for a four-week programme focused on practical digital strategies for business growth.

Microbusiness owners from sectors including circular economy, agriculture, food services, fashion, retail, logistics, beauty, and printing attended the training.

At the heart of the training is the principle that digital transformation has the capacity to enable small businesses scale and become more efficient. Participants were encouraged to start small, digitise repetitive tasks, and scale gradually using the Kaizen approach of continuous improvement.

This mindset allows them to see technology as a practical enabler of growth rather than a barrier. As the training progressed, the participants also learned about telesales and cybersecurity.

Speaking on the importance of the initiative, Odunayo Sanya, Executive Director of the MTN Foundation, said the programme is designed to equip young microbusiness owners with skills that directly address real business challenges.

“Small businesses are the backbone of our economy, and enabling young people adopt simple digital tools can make a real difference in productivity, sustainability, and long-term growth,” she said.

She also mentioned that the top-performing 600 participants will receive equipment grants of N600,000 each at the end of the programme.

Participants will continue to access learning materials and session recordings for the 5-week course, ensuring that digital adoption extends beyond the classroom. By combining practical guidance, relatable case studies, and continued support, the programme reinforces the message that digital growth for SMEs is achievable leveraging on technology.


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Airtel Nigeria Commits to Boosting Nigeria’s Digital Infrastructure

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Airtel Nigeria has reaffirmed its long-term commitment to strengthening Nigeria’s digital infrastructure and data access to bridge gaps in connectivity and unlock new opportunities in the country.

The company restated this commitment during a recent high-level inspection tour of the Nxtra Data Centre that is being developed through Nxtra by Airtel Africa at Eko Atlantic, Lagos, the highly rated smart city with ambition to become the Data Centre hub of Nigeria.

The inspection tour was led by the Chief Executive Officer of Airtel Nigeria, Dinesh Balsingh and the Chief Executive Officer of Nxtra by Airtel Africa, Yashnath Issur, with the esteemed chairman of Eko Atlantic Mr. Gabbi Massoud, the CEO of the lead Engineering firm Design Group Limited, Mr. Bayo Odunlami and tech journalists.

The Nxtra Data Centre went through a stringent design validation process and cleared the approval to proceed construction from Eko Atlantic.

Commenting on the developments, Mr Issur said the site visit was a milestone marker and an indication of the company’s commitment to delivering the world-class digital facility on time and ensure that, ultimately, the investments deliver reliable, secure, world-class services for Nigeria and the rest of the continent.

“This Nxtra Data Centre in Lagos represents a critical part of our long-term vision for Nigeria’s digital ecosystem. Today’s visit allows us to review progress, engage our stakeholders, and ensure that our infrastructure investments continue to meet global standards and local needs.

“This data centre will deliver critical high multi megawatt capacity in line with hyperscale customers and enable high density environment. We are putting the infra to bring the cloud to Nigeria,” he said.

The data centre, set to be the largest in Nigeria, is being established to deliver hyperscale and edge facilities across key African markets. With a load of 38 Megawatts, the Lagos facility is expected to serve as a major hub for data hosting, cloud services, content distribution, artificial intelligence, and enterprise solutions in West Africa.

In his remarks, Mr Balsingh reiterated that the data centre was progressing steadily towards the previously announced 2028 go live date.

“Since the announcement of this project, our focus has been on building a world-class facility that supports Africa’s digital transformation agenda. We are encouraged by the progress recorded so far and remain committed to delivering a secure, energy-efficient, and future-ready data centre for Nigeria,” he said.

During the tour, stakeholders were ushered through key sections of the site, including piling zones, where required structural requirements have been tested. Technical teams provided briefings on infrastructure design, security architecture, redundancy systems, and sustainability measures being implemented to ensure reliability and operational excellence.

Strategically located close to major fibre routes and undersea cable landing stations, the Eko Atlantic data centre is designed to enhance Nigeria’s data sovereignty, reduce latency, and improve access to reliable digital services for private and enterprise customers, significantly boosting the country’s data hosting capacity and supporting emerging technologies such as artificial intelligence and cloud computing.

Mr. Massoud noted that the inspection tour underscored the city’s dedication to infrastructure of global relevance.

“Eko Atlantic as a city with high quality infrastructure will contribute positively to boost the economy of Nigeria and is a perfect place for the development of the digital infrastructure of Nigeria. The Nxtra data centre reflects the calibre of projects we seek to attract — long-term, technology-driven investments built to the highest global standards.

Today’s visit affirms the rigour of the planning and execution process by Nxtra, and the commitment of Eko Atlantic to facilitate and promote the Nigeria’s evolving digital ecosystem,” he said.

Through this ongoing investment, Airtel Nigeria and Nxtra continue to demonstrate their commitment to building infrastructure that enables innovation, supports economic development, and accelerates Nigeria’s digital transformation.

Nxtra by Airtel is developing a network of hyperscale data centres across the continent. Besides Lagos, construction of a new data centre has also commenced in Nairobi, Kenya and the Democratic Republic of Congo.


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