Zeepay Ghana acquires Mangwee Mobile Money in Zambia
Zeepay, one of the leading African Challenger Fintech with operations in over 10 African countries today acquired a 51 per cent stake in Mangwee Mobile Money Zambia.
In a private placement, Zeepay and Mangwee agreed to a sale of 51 per cent of Mangwee shares to Zeepay. The deal makes Zeepay Ghana the majority shareholder of the entity.
Mangwee has been in operations since 2018, and was initially set up to operate as an alternative wallet targeting university students in Zambia with the aim of assisting to drive the cost of mobile money services downward.
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 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.
The Managing Director of Zeepay, Andrew Takyi-Appiah, in an interview, mentioned that “In 2020 we processed 2.4 million transactions valued at $400million across 10 markets.
The acquisition of Mangwee is strategic and opens up the Southern African corridor for Zeepay.
“This will give Zeepay access to Mozambique, Malawi, Angola and Namibia amongst others in our efforts to capture Africa’s $70billion remittance market and opportunity to deploy our award-winning products.”
Subscribers from these communities will receive a microinsurance coverage as an incentive to build and maintain a healthy saving habit.Beneficiaries of the microinsurance receive up to GHS 5,000 monthly coverage should there be dread diseases.
“Insurance is about protection, however, over the years we have realized that most insurance companies tend to focus on cover with less emphasis on protection,” Zeepay Managing Director Andrew Takyi-Appiah said.
“We are delighted that out of remittance we can scale to achieve insurance protection for the bottom of base and would like to thank UNCDF for supporting us to achieve this milestone.
“Despite these positives,” she said, “one key challenge has been the activities of fraudsters and other criminal elements. The upcoming SIM re-registration exercise will weed-out fraudsters and diminish cybercrimes.”The minister added that her outfit and relevant stakeholders will ensure that financial inclusion progresses, by riding on suitable financial products as well as connectivity.
Paa Kwasi Yankey, Chairman of Zeepay, mentioned “The move to invest in Mangwee is part of our global strategy to expand our footprint across Africa. In an effort to better serve our global clients and reduce the cost of remittance into Africa.”
“Acquisition of Mangwee by Zeepay marks the opening of Southern Africa to the world of conveniently affordable IMT services,” said Aston Njovu, co-founder of Mangwee.
Bwalya Kampamba and Aston Njovu, Founders of Mangwee mentioned “the partnership with Zeepay is good for Africa and Zambia. Through this, we will be able to leverage their award-winning mobile money products such as Remit Insurance, Payments, and Visa-direct to deepen financial inclusion and open up the markets.”