The Financial Remittances Sector is one of the fastest-growing sectors in the world. In Africa, this sector accounts for hundreds of thousands of direct jobs and millions more indirectly.
The infrastructure invested by companies within this space plays a crucial role in linking the continent to the hundreds of millions of Africans living and working in the diaspora, providing much-needed foreign exchange to countries and maintaining a connection between emigrants and their African homes.
As a result, the financial remittances sector remains a critical tool in powering emerging African economies and with the continent’s increasing populations. If well managed, the sector can provide solutions to many of the continent’s financial challenges, such as bridging the gap between the banked and unbanked populations and providing employment and wealth creation opportunities for millions on the continent.
Also, the growth of Africa’s population presents an increasing complexity in the above challenges. With this increase in challenges comes a significant rise in opportunities, which genuine Africa-founded, Africa-led, and Africa-based companies must address. One such company is the treasury management technology company Multigate, which recently qualified as a SWIFT Lite2 for Business Application provider.
What SWIFT green light means
The SWIFT-compatible application connects potential customers to thousands of financial institutions globally by leveraging the SWIFT network. The Society for Worldwide Interbank Financial Telecommunications (SWIFT) system powers a large majority of global financial messaging between financial institutions.
In a statement, the CEO of Multigate, Eghosa Nehikhare, said, “The SWIFT-compatible application validates the fact that our business application has met the stringent SWIFT requirements, whose main aim is to safeguard client transactions and to ensure that businesses on this platform adhere to national and international best practices. This way, leveraging the SWIFT network, our customers can connect to thousands of financial institutions globally. We hope our story and journey inspire other financial solutions companies around the continent.”
Moreover, in 2021, the company secured its International Money Transfer Operator (IMTO) and Payment Solution Service Provider (PSSP) licenses in Nigeria. The company is expanding to other African markets and working with its regulators to secure the requisite licenses.
“We are excited and look forward to entering new markets, especially our East Africa regional drive, which includes Kenya, Uganda, and Tanzania. From a strategy and innovation perspective, these markets align with our long-term vision,” he says.
In addition, the issuance of these licences by Africa based firms remains crucial in moving individual economies in Africa closer to their aspirations.
“As we seek to address the treasury/cash management needs of African corporates that trade regionally and globally, our product enables seamless consolidation of all global bank accounts for these corporates. This integrated product allows our African corporate clients to manage their liquidity more efficiently and reduce the complexities of managing multiple banking portals,” Multigate CEO Eghosa Nehikhare says.
He adds that the company’s recent success in providing global solutions is a testament to the hundreds of companies set up every day across the continent to solve problems that, hitherto, have been classified as uniquely African.
“For instance, our journey to creating global solutions is constantly being chaperoned by our deep relationship management expertise and unique understanding of our client’s needs. This enables us to provide our clients with the most secure treasury and liquidity management experience through our innovative digital platforms and robust partnerships governed by the highest regulatory standards,” he says.