In a bid to enhance financial inclusivity and support migrant communities, MTN has significantly expanded its Mobile Money (MoMo) fintech offering’s remittance network across Africa. The expansion includes the addition of 25 new wallet corridors spanning 10 African countries, bringing the total remittance network to a staggering 200 million wallets across 24 countries.
Kagiso Mothibi, GM for fintech products and services at MTN South Africa, highlighted the significance of this expansion, particularly for migrant communities in South Africa sending money to countries such as Mozambique, Malawi, and the Democratic Republic of Congo. The newly enabled corridors facilitate seamless transactions between South Africa and countries including the DRC, Ethiopia, Kenya, Madagascar, and more.
Transactions through the remittance functionality incur a charge of 4% per transaction, with payments originating in South Africa and flowing outbound due to the current infrastructure limitations. However, plans are underway to enable inbound transactions by the end of 2024 to address the remaining 10% of inbound remittances.
To enhance interoperability, MTN has forged partnerships with prominent fintech platform operators such as Orange, Tigo, M-Pesa, and Airtel, enabling wallet-to-wallet transactions as well as wallet-to-cash functionality.
The move comes at a crucial time as the remittance market in Africa has historically been neglected by the formal financial sector, leading many migrant workers to resort to risky cash-based methods to send money to their families. MTN’s expansion aims to address this gap and foster greater financial resilience within communities.
Sergine Dioum, group chief fintech officer at MTN, emphasized the company’s commitment to regional initiatives aimed at improving interoperability and reach, highlighting collaborations with initiatives such as Transactions Cleared on an Immediate Basis (TCIB) in the Southern African Development Community.
Through these efforts, MTN seeks not only to facilitate cross-border transactions but also to drive economic empowerment and financial stability across the continent.
