Progress Update on Grantees

RGF awarded grants, on at least a 50:50 matching funds basis, to the following six companies (five FinTechs and one emerging Money Transfer Operator):

 1.Zeepay Ghana Limited

2.PayInc Ghana Limited

3.expressPay Ghana Limited

4.DreamOval Limited

5. Nsano Limited

6. IT Consortium Limited

The total amount committed in grants to the six companies is US$ 1,172,180.

A media event was held on 29 August 2018 to announce Round 1 winners and present them with dummy cheques.

Another media event was held on 19 June 2019 to formally announce the winners of the second round of the competition.

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Updates on Grantee Projects

Two of the grantees have successfully completed their projects under the grant and continue to deliver in the remittance space.

1. Zeepay Ghana Limited

The company has successfully completed its program which ran for a period of 18 months. The milestones achieved during the program include:

First Mile Access: Zeepay introduced an online portal and mobile application channels working through its MTO partners including MoneyGram and Ria. This has resulted in remittances from lesser-known corridors to Ghana.

Last Mile Access: The grantee’s partnership with a few global money transfer operators including MoneyGram, Ria, Small World, MoneyTrans, Instant Cash and INSTNTMNY resulted in a significant increase in mobile wallet repeat transactions per which means recipients do not have to travel to a bank branch or agent to receive their remittances.

Cost of Remittances: The cost reduction effect of Zeepay’s operations is linked to online and mobile applications available to remitters, through its MTO partners in the send markets. The partnership now offers zero fees for senders through MoneyGram online directly to mobile money wallets.

Investment-Backed Remittance Product: In the course of implementation, Zeepay was able to develop an investment-backed remittance product called Remit-Invest in partnership with Glico Capital.

 

2. PayInc Ghana Limited

The company has successfully completed its program which ran for a period of 24 months. The milestones achieved during the program include:

Cost of Remittances: Reduction of cost to below 1%

Faster Remittances:

•Reduction of processing time to within 5 minutes across all channels

•58% switch from over-the-counter cash-outs to digital channels

Greater use of formal sector remittances: Average of 16% month-on-month increase in customer numbers

Through the RGF support, PayInc also extended its service to five new corridors in Europe (Germany, Netherlands, Italy, France, and Spain).

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Market Study

As part of the RGF, SECO commissioned a research into the Ghanaian remittances market to better understand market dynamics, to develop effective tools to improve the operating environment for remittance service providers, including winners of the RGF, and to encourage growth in and usage of formal remittances channels by the Ghanaian diaspora sending funds to their family and friends.

DMA Global was commissioned to undertake the study between June and December 2019. The focus of the research included: a review of the market structure for sending remittances to Ghana, including the products and services available and the costs of these; a literature review of previous studies completed on the Ghanaian remittances market, with a consolidation of recommendations for how to improve the operating environment; and, an assessment of the legal and regulatory framework, identifying potential bottlenecks that could be addressed to encourage the use of formal channels. Demand side research, focusing on the users of remittance channels to and from Ghana, was also a major component of the work, with DMAG teams interviewing remittances senders in the UK, USA, Nigeria, and the Netherlands. Receivers of international remittances were interviewed in Accra and Cape Coast, following consultation with remittance stakeholders in the industry on target locations. In total 99 remittance senders and receivers participated in 10 focus groups around the world.

The report detailing the findings and recommendations thereof can be downloaded from the homepage.

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