Mukuru, a South African-based money transfer firm has acquired Zoona Malawi’s operational assets along with the technology systems that support its Malawian operations.
“Mukuru empowers Africa’s financially underserved migrant workers to be included in the formal financial ecosystem and to move money in a convenient, safe and affordable way,” says Andy Jury, CEO, Mukuru.
“This acquisition will bring the benefits of our extensive products and cutting-edge technology to the citizens of Malawi – giving them better options and safe mechanisms to send money to loved ones and ultimately uplift their communities.”
With operations in over 20 countries across Africa and Asia, Mukuru has served over 30 million cross-border transactions via its money remittance services, critical customer services such as Funeral Cover, The Mukuru Money Card and payment solutions for businesses.
The acquisition strengthens Mukuru’s position in the African remittance market and boosts financial inclusion across the continent. The two firms have been working together for four years in Malawi.
The acquisition will also extend Mukuru’s unequalled African footprint deep into urban and rural areas in Malawi saving users time and money used to travel long distances to local towns to claim remittances. The increased access to Mukuru’s services for rural dwellers in Malwi will lessen the erosion of wealth and provide more opportunities for financial upliftment.
After the deal, Zoona Malawi’s agents will operate as Mukuru agents offering any new services the firm will launch in the near future. They will also benefit from a wider product range to offer customers backed by Mukuru’s trusted and established brand name. In addition, agents will benefit from being part of the SADC regional network, increasing their regional exposure and potentially boosting earnings over time.
Mukuru leverages the Zoona acquisition to rapidly accelerate financial inclusion. Zoona enables entrepreneurs to bring safe and reliable financial services to underserved communities in Malawi and elsewhere.
Paul Maasdorp, Managing Director at Emerging Capital Partners, key Mukuru investors, noted: “We are pleased to continue to support Mukuru’s rapid expansion and extensive reach through organic growth and acquisitions across the continent.
Mukuru is an exciting, large fintech player that is leveraging its impressive technology platform and logistics capabilities to rapidly formalize informal channels and provide an affordable, safe alternative to risky informal remittance channels.”
Innovative money transfer providers that leverage technology and global partnerships are rapidly accelerating financial inclusion across the continent by providing convenient, secure and accessible alternatives to informal, unregulated players that operate illegally. All too often, migrants who turn to informal remittance ‘providers’ fall prey to loan sharks and fraudsters, losing many months of income because of a lack of services in their area.
“Mukuru is a strong and stabilising presence in the markets and regions in which we operate, providing inflows vital to immigrants and central banks alike. We work closely with regulators and central banks in this highly regulated industry to lead in compliance and provide innovative products that are affordable and accessible to our customers and disempowered migrant workers,” adds Jury.
“Looking ahead, we plan to build up the agent network and provide new and exciting accessible financial products in Malawi. By becoming an integral part of one of the largest fastest growing fintech’s in the region, former Zoona agents will have access to money movements in the broader region with the backing of world-class technology and infrastructure.”
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