Africa focussed remittances company MFS Africa raised USD 2.5 Mn from UK’s Department for International Development (DFID). The development came in at the backdrop of a report launch by the London Exchange Group naming out the Companies to Inspire Africa 2019.
The funding announcement was made by the International Development Secretary, Penny Mordaunt who lauded the mobile money company for making remittances cheaper and affordable. She mentioned the investment to be in line with “UK honouring its commitments to the G20 and Global Goals targets of reducing those costs.”
As per her speech during the event, she highlighted that the estimated amount of remittances in Africa annually is USD 66 Bn and approximately 10% originates from the UK. Owing to the high remittance fees, much of the money is lost during transfer for Africans.
She went on to add that to strengthen the links between the regions; the UK will host the UK-Africa Investment Summit later this year.
The Fintech firm had recently announced a partnership with Ecobank and was appointed as the Digital Payment Partner. MFS Africa also secured big ticket rounds last year cumulatively adding upto USD 14 Mn. The Johannesburg based remittances company featured in $5 Mn club of WeeTracker’s Annual VC Investment report.