Nigeria’s Access Holdings teaming up with Coronation Group, the holding company is establishing ties with Safaricom and M-Pesa Africa to create a remittance channel connecting East and West Africa.
Under the leadership of Aigboje Aig-Imoukhuede, Access Holdings is striving to dominate the remittance market in both East and West Africa.
A significant move by Access Holdings in East Africa involves acquiring the entire issued share capital of National Bank of Kenya Limited, TechCabal reported.
Mr Aig-Imoukhuede emphasized that this partnership represents more than just a combination of capabilities; , “It symbolizes the merging of expertise and resources to promote financial inclusion and empower millions across Africa.”
According to data from the World Bank’s Migration and Development Brief report, Nigeria and Kenya rank as the first and third largest recipients of diaspora remittances in sub-Saharan Africa.
“In 2023, remittances to Nigeria constituted 38% of the total $58 billion remittances to the region, with Ghana and Kenya experiencing gains of 5.6% and 3.8% respectively.”
Access Bank, Africa’s largest consumer bank with over 60 million customers across 21 countries, aims to bolster its remittance business by addressing challenges faced by customers when sending money within and outside the continent.
Pending approval from Kenyan financial authorities, the collaboration will link over 60 million customers and 5 million businesses across eight countries, processing more than $1 billion in transaction value daily.
Access Holdings, operating in 14 African countries and being the largest consumer banking institution, is expected to provide technology-driven financial services, while Coronation Group will contribute its technological expertise.
M-Pesa, Safaricom’s mobile money platform, currently dominates the Kenyan market with a 96.5% share.
However, plans to separate M-Pesa from Safaricom are underway to reduce potential disruptions, as announced by Kamau Thugge, Governor of the Central Bank of Kenya, in December 2023.
Managing director of M-Pesa Africa, Sitoyo Lopokoyit, highlighted the importance of initiatives like the African Continental Free Trade Area (AfCFTA) in promoting intra-continental trade.
“African countries trade more with nations outside the continent than within themselves. Initiatives such as the African Continental Free Trade Area (AfCFTA) seek to address the lack of intra-continental trade. This partnership with Safaricom, Coronation Group and Access Holdings seeks to explore remittance corridors between East and West Africa, bringing alive the AfCFTA spirit,”
The partnership with Safaricom, Coronation Group, and Access Holdings aims to establish remittance corridors between East and West Africa, aligning with the AfCFTA objectives.
