Access Holdings, a leading multinational financial services group that offers commercial banking, lending, payments, amongst others, has partnered with Coronation Group, Safaricom and M-Pesa to facilitate remittances in East and West Africa.
This strategic partnership is led by Access Holdings Chairman Aigboje Aig-Imoukhuede, who noted that the alliance encompasses more than a convergence of capabilities, but rather signifies the fusion of collective expertise, resources, and unwavering commitment to drive financial inclusion, empowering millions throughout Africa.
Also commenting on the partnership, managing director, M-Pesa Africa Sitoyo Lopokyit said,
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“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 first phase of the collaboration will concentrate on the biggest markets in East And West Africa, which include, Kenya, Nigeria, Tanzania and Ghana. Notably, this collaboration holds a significant promise, considering Africa’s substantial remittance flows, with Nigeria and Kenya emerging as primary recipients in their respective regions.
Also, the collaboration between these financial giants Access Holdings, Safaricom, and M-Pesa, is projected to enhance remittance services by leveraging their combined expertise and resources.
Access Holdings which has a presence in 14 African countries and is the largest consumer banking institution, is expected to provide technology-infused financial services and Coronation Group will bring its technology expertise to the deal.
The payment company leverages the strong suite of the Bank’s existing assets and customer base, creating a super fintech that is poised to become Africa’s most powerful business services network.
On the other hand, Safaricom’s fintech subsidiary M-Pesa is a very strong player in this alliance. The payment platform currently dominates the mobile money market in Kenya with a 96.5% share of the market.
M-Pesa has a significant presence in Kenya, with over 30 million customers, and also operates in other African countries such as Tanzania, Lesotho, Ghana, Mozambique, Egypt, and the Democratic Republic of Congo. Its customers conduct transactions worth more than $314 billion annually, with M-Pesa responsible for 60% of formal remittances in Kenya and 20% in Tanzania.
The platform has made financial services accessible to millions of people who previously lacked access to traditional banking services and has transformed how people in Africa handle their money.
Based on a 2023 report, remittances to Nigeria constituted 38% of the $58 billion remittance flows to Africa, experiencing a modest 2% growth. Meanwhile, other major recipients such as Ghana and Kenya witnessed estimated increases of 5.6% and 3.8%, respectively.
This collaboration which is subject to approval from the Kenyan financial authorities, will see the players connect more than 60 million customers and 5 million businesses across 8 countries and process more than $1 billion in a day in transaction value.