Founded by David Ajala, Africhange was created to help African immigrants with their financial difficulties, especially when it came to sending money home. Motivated by his own challenges as an immigrant in Canada, Ajala founded Africhange in 2020 with an emphasis on remittance services that are transparent and affordable. He also urges the CBN to quit floating the Naira as it influences the Nigerian economy. Currently available in Canada, Nigeria, Australia, and the UK, the platform intends to enter the US and EU markets. Recently, Africhange obtained a licence from The Central Bank of Nigeria (CBN) to operate as an International Money Transfer Operator (IMTO).
Direct collaborations with Nigerian banks are permitted under this licence. By doing away with middlemen, this lowers expenses while increasing speed and user value. Ajala underlined Africhange’s involvement in resolving typical remittance difficulties, including excessive fees, delays, fraud, and inflation. Nigeria’s substantial expatriate population makes it one of the top receivers of diaspora remittances. Nigeria received $20 billion in remittances in 2022, which represented 4% of its GDP. These monies were frequently utilised for investments in tech startups, real estate, and Agriculture as well as for basic necessities.
PAPSS gives hope for more efficient cross-border payments.
While currency fluctuations have led to a rise in remittance volumes as Nigerians overseas take advantage of advantageous exchange rates, digital advances in the sector have reduced costs and enhanced accessibility. Ajala talked on Nigeria’s foreign exchange problems, blaming them on an over dependence on oil exports and a lack of diversification. He proposed ways to improve oil production efficiency, diversify exports, draw in international investment, and make use of programs like the Pan-African Payment and Settlement System (PAPSS). PAPSS gives hope for more efficient cross-border payments, however intra-African payments are still difficult due to fragmented systems and dependence on foreign currencies.
According to financial experts, the economic future of the continent depends on this type of regional cooperation. African Development Bank economist Dr. Adaobi Okeke claims that one of the main obstacles to intracontinental commerce is the disarray of payment systems among African countries. In Africa, PAPSS has the potential to completely transform business practices by facilitating quicker, easier, and less expensive cross-border transactions. In the future, Africhange is getting ready for a funding round to help Finance its international growth in 2025.
It has a competitive edge when in serving the African diaspora.
In addition to expanding its product line, the company intends to reach other African nations. In order to provide the African Diaspora with an effective, community-focused service, Africhange intends to reach even more people as the platform grows into the US and the EU. “We are not just building a platform; we’re building a movement that connects families, strengthens economies, and empowers people,” is Ajala’s clear vision for the future. The problems that other remittance firms were having led to Africhange’s debut into the market.
Western Union and MoneyGram are examples of these remittance services, as are more recent arrivals like WorldRemit. Although these businesses provide a worldwide reach, they are frequently beset by exorbitant costs and ineffective transfer procedures. By avoiding middlemen, charging less, and offering a more transparent customer experience, Africhange has a competitive edge when it comes to serving the African diaspora. For a more cohesive financial ecosystem throughout Africa, the Pan-African Payment and Settlement System (PAPSS) also has potential.
Related Article: Revised Int’l Money Transfer Services
Cross-border payments will no longer require foreign currencies like the dollar or euro as a result. Africhange supports such programs because he believes they are essential to maximising the potential of intra-African remittance and commerce networks. In the long run, remittance platforms like as Africhange are doing more than just sending money; they are helping to change the way that international payments are managed, strengthening the Bonds between the African diaspora and their home nations, and boosting Africa’s economy.