What you need to know:
- Financial remittances, if well managed can provide solutions to many of Africa’s financial challenges such as bridging the gap between the banked and unbanked
Financial technology (Fintech) firms in Africa must invest in the right infrastructure to link the continent to millions of Africans living and working in the diaspora, according to Mr Eghosa Nehikhare, the Multigate chief executive officer.
In a statement, Mr Nehikhare indicated that financial remittance is one of the fastest-growing sectors, thus, remaining a critical tool in powering emerging African economies.
If well managed, he said, the sector can provide solutions to many of Africa’s financial challenges, such as bridging the gap between the banked and unbanked as well as providing employment and wealth creation opportunities for millions on the continent.
“The growth of Africa’s population presents an increasing complexity. With this increase in challenges comes a significant rise in opportunities, which genuine Africa-founded, Africa-led, and Africa-based companies must address,” Mr Nehikhare said, noting that as Multigate, which recently qualified as a Society for Worldwide Interbank Financial Telecommunications (SWIFT) Lite2 for Business Application provider, they had built a system that connects customers to thousands of financial institutions globally.
The SWIFT system powers a large majority of global messaging between financial institutions.
Mr Nehikhare also indicated that Multigate, which has already attained licenses for International Money Transfer Operator and Payment Solution Service Provider in Nigeria, will seek to expand to other parts of Africa with focus on East Africa and Uganda in particular.
“We are looking forward to entering new markets, especially our East Africa regional drive, which includes Kenya, Uganda, and Tanzania. From a strategy and innovation perspective, these markets align with our long-term vision,” he said.
Multigate, which addresses treasury and cash management needs of African corporates that trade regionally and globally through products that enable seamless consolidation of global bank accounts, seeks to allow Africans to manage their liquidity more efficiently and reduce the complexities of managing multiple banking portals.