July 18, 2024

Access Bank and Safaricom Partner to Revolutionize Remittances Across Africa

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Access Holdings, which owns Access Bank Plc, is merging with Coronation Group to create a partnership with Safaricom PLC and M-PESA Africa. The partnership aims at providing a remittance corridor between East and West Africa.

Africa pulsates with the energy of diverse cultures and burgeoning economies. Yet, a significant hurdle continues to impede progress – the difficulty of sending and receiving funds across borders. 

This strategic collaboration masterfully combines the unique strengths of each entity. Access Holdings, the parent company of Access Bank Plc, boasts an expansive footprint spanning 14 African countries. 

Coronation Group, a leading investment holding company, brings its wealth of financial expertise to the table. Safaricom, a telecommunications giant, is the driving force behind M-PESA, the continent’s dominant mobile money platform. 

Together, they aim to create a seamless remittance corridor connecting East and West Africa. They plan to empower over 60 million customers and 5 million businesses scattered across eight countries.

Remittances, the transfer of money by foreign workers to their home countries, are a crucial lifeline for millions of Africans. Data from the World Bank reveals that Nigeria and Kenya are the top recipients of diaspora remittances in sub-Saharan Africa. In 2023 alone, Nigeria received a staggering 38% of the total remittance inflow to the region. 

This partnership has the potential to significantly improve the remittance experience for these users. It can dismantle the current obstacles, such as exorbitant fees, sluggish processing times, and limited accessibility.

Technology serves as the cornerstone of this initiative. Access Holdings and Coronation Group, renowned for their tech-driven financial services, are poised to leverage its expertise to streamline the remittance process. 

This combined force is well-positioned to address the surging demand for mobile money solutions, particularly considering M-PESA’s unparalleled dominance in Kenya. M-Pesa controls a staggering 96.5% of the market share in Kenya.

The partnership extends far beyond mere financial transactions. It aligns perfectly with the vision of the African Continental Free Trade Area (AfCFTA), a continental initiative aimed at boosting intra-African trade. 

Currently, African countries trade more with nations outside the continent than with each other.

By facilitating seamless money transfer between East and West Africa, this alliance paves the way for increased economic activity within the continent.

The initial phase of this collaboration will strategically target key markets within the East-West African corridor, including Nigeria, Kenya, Ghana, and Tanzania.

This well-defined approach ensures the initiative reaches a substantial number of potential beneficiaries, maximizing its impact. 

Furthermore, Access Holdings’ ongoing expansion, exemplified by its recent acquisition of National Bank of Kenya further strengthens its reach across the continent. Access Holding is also planning a takeover of Finance Trust Bank Uganda.

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Coronation Group, with its extensive experience in investment and asset management, provides a well-rounded financial foundation for the alliance.

Founded in 1973, the company boasts a strong presence in South Africa and caters to a diverse clientele, including pension funds, banks, and international investors. 

Its expertise will be instrumental in ensuring the financial stability and growth of this groundbreaking partnership.

Safaricom PLC, as a key player in this strategic partnership, brings a suite of services and resources that significantly enrich the collaborative effort. Its renowned safaricom customer care services ensures seamless support for users, addressing any queries or concerns promptly and efficiently. 

Additionally, its robust network infrastructure and widespread presence through safaricom shops across Kenya enhance accessibility for customers seeking to engage with the remittance corridor.

Safaricom’s market influence extends to its share price, reflecting the company’s performance and investor confidence. As of the latest update, safaricom share price stands at KES 19.25, indicating its stability and growth potential, which further solidifies its role in the partnership.

For customer inquiries, individuals can reach safaricom customer care at 100 (Free) or +254 722 002100, with Safaricom only calling from 0722000000.