Zeepay, the Ghanaian money transfer service has acquired a 51 per cent stake in Mangwee Mobile Money Zambia in a private placement.
Zeepay is the leading African challenger fintech with operations across 20 African countries and 30 day active in 10 of them. The company specializes in paying remittances into mobile money wallets across Africa and is regulated by both Bank of Ghana as an EMI issuer and in the UK as a Money Transfer Operator, by the Financial Conduct Authority.
The deal makes Zeepay Ghana the majority shareholder of the entity and is expected to expand their operations further in Southern Africa. The acquisition will give the firm access to Mozambique, Malawi, Angola and Namibia amongst others in efforts to capture Africa’s estimated $70 billion remittance market.
Mangwee has been operational since 2018 and was originally created as an alternative wallet for university students in Zambia with the aim of assisting to drive the cost of mobile money services downward.
The merger is the first of its kind; that two Indigenous African fintechs into Mobile Money operations have come together to grow, representing a wind of change ongoing on the African continent. Zeepay’s financial advisor Verdant Capital, acted as Zeepay’s M&A advisor on the acquisition.