WorldRemit Marks Africa for Share of $36 Billion Cash Transfers

LAGOS, Nigeria, Capital Markets in Africa: WorldRemit is seeking transactions in every African country by October as the company seeks a bigger share of the continent’s money transfers which are forecast to reach $36 billion this year.

WorldRemit is currently operating in 34 of Africa’s 54 states and is using partnerships with cellular operators such as MTN Group Ltd. and Vodafone Group Plc to grow the number of money transfers through mobile technology, the London-based, closely held company’s chief operating officer, Catherine Wines, said in an interview in Abidjan, the commercial capital of Ivory Coast.

“There’s no doubt that mobile money will be a major product in the future and it will continue to develop, and not only in Africa,” Wines said. “Africa is the leader but things are starting to change in Asia and Latin America.”

Mobile banking is more popular in sub-Saharan African countries than more developed markets due to a lack of banking infrastructure. Remittances to the region will increase 3.4 percent this year to reach $36 billion, the World Bank estimated in April.

WorldRemit expects its revenue to grow 66 percent this year to 50 million pounds ($72 million) and targets a first-ever profit, Wines said.

Source: Bloomberg Business News