Safaricom forges new partnership to expand M-Pesa to West Africa

The companies have formed a strategic alliance to propel financial inclusion across the continent in a move that is likely to increase efficiency in sending and receiving money through mobile phones in the continent.

They are now seeking to create solutions that will eventually give rise to mobile remittance between East and West Africa.

The partnership will see the convergence of Access Holdings' robust Pan-African banking infrastructure, spanning 14 African countries, with Coronation Group's comprehensive array of technology-infused financial services offerings in West Africa, coupled with M-Pesa and Safaricom unlocking the two region's remittance bottlenecks.

Currently, M-Pesa is Africa's leading mobile money and digital payments service, connecting more than 60 million customers and five million businesses across eight countries and processing more than $1 billion (Sh132 billion) a day in transaction value.

We are excited to announce a groundbreaking partnership between Access Holdings, Coronation Group, Safaricom and M-PESA Africa that seeks to explore remittance solutions between West and East Africa. pic.twitter.com/DHLmsF0qkb

— M-PESA Africa (@MPESAAfrica) March 26, 2024

Aigboje Aig-Imoukhuede, Chairman of Access Holdings and Coronation Group, emphasised the empowerment that forms the foundation of this collaboration.

"We stand at the threshold of an extraordinary journey, one poised to shape the financial landscape of Africa," Aig-Imoukhuede said.

"This partnership encompasses more than a convergence of capabilities; it signifies the fusion of collective expertise, resources, and an unwavering commitment to drive financial inclusion, empowering millions throughout Africa."

Pivotal markets

The first phase of the collaboration will be keen on pivotal markets, including Nigeria, Kenya, Ghana, and Tanzania.

The partnership is now a matter of commercial discussions and definitive agreements, internal corporate approvals of the respective parties and relevant legal and regulatory processes.

Sharing his thoughts on the transformative potential of the collaboration, Mr Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc said the move has the power to recalibrate the trajectory of financial services in Africa.

"By combining our strengths with those of Coronation Group, Safaricom and M-Pesa Africa, we will deliver on our promise of sustainably impacting our stakeholders, empowering individuals, and significantly contributing to the continent's economic ascension," he said.

M-Pesa MD Sitoyo Lopokoiyit said 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," Lopokoiyit said.

"We will be collaborating with M-Pesa Africa, Coronation Group and Access Holdings to explore secure, convenient, and affordable remittance solutions that will connect our customers to opportunities in West Africa. Africa remains an underserved region, especially for remittances within the continent making such partnerships crucial in closing the gap," Safaricom CEO Peter Ndegwa said.