South African Fintech company, Mama Money, has joined forces with Malawian telecommunications and mobile money provider, TNM, to introduce its services in the country. This collaboration will allow Mama Money customers to send funds to any TNM Mpamba account for cash collection at over 40,000 locations throughout Malawi.
Monthly remittance flows from South Africa to Malawi are estimated to exceed $20 million through both formal and informal channels, making remittances critical for supporting basic necessities like healthcare, education, and housing. Despite being one of the costliest countries to send money from, Mama Money launched in 2015 with a fee of just 5%, compared to the average cost of 14%.
Today, the average cost of sending money from South Africa has decreased to 7%, closer to the global average of 6%. Mama Money provides money transfers to over 50 countries in Africa, Asia, and Europe, with key markets including Zimbabwe, Malawi, Mozambique, Ghana, Uganda, Nigeria, India, Bangladesh, and Pakistan. The Fintech also offers banking services and money transfers from Europe and other regions to South Africa.