Why Are Remittance Startups Ignoring the Countries That Need Them Most?
- Sub-Saharan Africa received $56 billion in remittances in 2024.
- The Gambia relies on remittances for over 21% of its GDP, while Lesotho and Comoros also have high remittance-to-GDP ratios.
- Well-funded startups like LemFi, NALA, Flutterwave, and Chipper Cash focus on the Nigeria-Kenya-South Africa corridor, neglecting smaller markets.
The remittance market in Sub-Saharan Africa presents a paradox where high dependency on remittances does not translate into startup opportunities. This raises questions about market dynamics and the potential for innovative solutions tailored to smaller markets. A focus on strategic partnerships and embedded financial services could unlock significant value in these underserved regions.
