Sending money into and across Africa is still expensive, slow and often informal, but the market has matured a great deal since fintech first spotted the opportunity. Here is what the money remittance landscape in Africa looks like today, and who is actually solving the cost problem.
Why Africa remains an expensive place to send money
South Africa is historically one of the most expensive G20 countries to send remittances from, a legacy of thin competition and heavy reliance on a handful of large transfer agencies. Nigeria remains the continent’s largest remittance receiver by a wide margin, while Sub-Saharan Africa as a region continues to carry some of the highest average transfer costs in the world, according to the World Bank’s remittance price data.
What has changed since fintech entered the space
Mobile money has done more to close the cost gap than new banking products. Kenya’s M-Pesa remains the model most other markets are measured against; Vodacom discontinued its South African M-Pesa service in 2016 after it failed to gain the same traction here. Mama Money, a Cape Town-founded challenger, has grown from undercutting the majors on price into a broader everyday financial services provider, now moving money to more than 70 countries. Zoona, once a major mobile-money player in Zambia and Malawi, was acquired by Chipper Cash in 2023 as the sector consolidated around fewer, larger platforms.
Who still dominates the market
Western Union and MoneyGram continue to hold over half the formal remittance market across much of Sub-Saharan Africa, particularly in countries with less mobile-money penetration. Global players such as WorldRemit compete mainly on digital convenience and price rather than agent network size.
What this means for African SMEs
For a small business paying suppliers abroad or receiving payment from the diaspora, the practical takeaway is to compare providers on total cost, not headline fee, since exchange-rate margins often hide the real price of a transfer.
Frequently asked questions
Why is it expensive to send money within Africa?
Limited competition among formal providers, weak regulatory harmonisation between countries, and heavy reliance on informal channels all keep prices high, particularly in Sub-Saharan Africa.
Is Vodacom’s M-Pesa still available in South Africa?
No. Vodacom discontinued M-Pesa in South Africa in 2016 after several years of limited uptake.
What happened to Zoona?
Zoona, a Zambia and Malawi-focused mobile money platform, was acquired by Chipper Cash in 2023.
Which countries receive the most remittances in Africa?
Nigeria receives by far the largest volume, followed by Egypt and Morocco among North African markets.
How can I compare remittance providers fairly?
Compare the total amount received after fees and exchange-rate margin, not just the advertised transfer fee, using a source like the World Bank’s remittance price database.
Further reading: How Ozow (formerly i-Pay) is changing online payments · CIPC company registration guide
Originally published in June 2016. Updated September 2026.
