Fintech Companies Aim to Slash High Remittance Costs for Sub-Saharan Africa
- In 2023, remittances to sub-Saharan Africa were valued at $54 billion.
- Remittances account for over a fifth of GDP in The Gambia, Lesotho, and Comoros.
- The average cost of sending money to sub-Saharan Africa is 8.37%, higher than the global average.
The emergence of fintech companies in sub-Saharan Africa represents a significant opportunity to transform the remittance landscape. By addressing the high costs and inefficiencies associated with traditional methods, these companies can enhance financial inclusion and economic stability in the region. However, the success of this transition hinges on overcoming regulatory challenges and fostering trust among users, particularly older generations accustomed to cash transactions.
