In recent years, there has been a surge in migration from the African continent to other continents, like Europe and North America. This trend has fueled the establishment of a number of money transfer services on the demand for cross-border transactions. Highlighting their success in facilitating international payment for Africans living abroad, majority of them have failed to identify the market potential in intra-African remittance.
The neglect of intra-African remittance does not only impact businesses operating within Africa, but it also affects migrants who have relocated to other African countries. According to the International Organization for Migration (IOM) in 2020, around 21 million Africans lived in other African countries other than their birth country. Statista reported South Africa as the leading African country hosting migrants, with 2.9 million people, followed by Cote d’Ivoire, with 2.6 million. The significant number of intra-African migrants highlights the importance of intra-African remittance.
Migrants often establish a habit of sending money back home to families or funding a project, thereby actively contributing to the growth of the local economy, recognising the importance of these intra-Africa remittances for fostering economic development and financial inclusion within the continent.
The shared vision of African leaders for the continent’s development lies significantly in the growth of intra-African trade, resulting in the establishment of the African Continental Free Trade Area (AfCFTA). However, progress of the cause has been slower than anticipated. The primary reason for this sluggishness is the inadequate financial infrastructure disrupting the flow of cash. This challenge has been a concern to many business operators and individuals within Africa, resulting in payment delays and causing both local and foreign investors to divert their investment abroad.
The sad angle is that, most African business operators seeking opportunities abroad are exposed to the fluctuation in the exchange rate, leading to unpredictable price hikes for goods and services, undermining the competitiveness of African businesses in the global market space, and preying on their inability to capitalise on opportunities for growth and expansion.
African countries can enhance the efficiency of cross-border remittance within the continent by prioritising the development of seamless financial infrastructure. The focus on improving financial systems will facilitate smoother cash flows and minimise transactional delays, ultimately fostering intra-African trade and economic integration.
Developing Africa’s financial infrastructure is a stepping stone towards reducing the continent’s dependence on foreign aid. By leveraging their resources, African nations can foster economic independence and chart their development pursuit and sustainable growth tailored to their unique needs and priorities.
The untapped market for intra-African remittances is equally as significant (if not more), as inter-continental remittances. Companies addressing the issues in this market lend themselves as key solution providers for cross-border transactions within Africa, which is currently a pressing need.
In the southern part of Africa for instance, the remittance services readily available for the most parts lack the capabilities to effectively enable business people transact seamlessly with their peers in the other parts of the continent. This is where CPayant comes in. CPayant is leveraging blockchain payment rails specifically designed to address this challenge. CPayant focuses on facilitating cross-border payments within the African continent for individuals and businesses. By leveraging permissionless technology, CPayant ensures seamless transactions, with payments processed in seconds.
Our product seals the gap in the industry by allowing everyday people and companies of all sizes to transact continent-wide. With CPayant, business owners may expand their operations beyond their present geographic boundaries with confidence, knowing that they have an effective and dependable payment solution to back them up, and individuals can send smiles across borders in split seconds by sending money 😊