Afrimarket
- LocationWest Africa
- SectorRemittances
- Type of investmentEquity investment
- Project stageTest & Transition
A $2.2 million preferred equity investment in Afrimarket, an innovation which seeks to increase remittance flows to West Africa, especially regional and rural areas, through a cash-to-goods approach and reduced sender costs.
Investment Overview
4.8%
The percentage of GDP that remittances represent in the 5 West African countries where Afrimarket operates
8%
The percentage of the amount sent that is taken in remittance fees on average
The development problem.
Remittances play an important role in domestic resource mobilization, representing up to 5% of GDP in West Africa and acting as a form of insurance against macroeconomic shock. However, several major barriers to the use of remittances exist. These include high fees and trust issues, with average global remittance costs reaching 8% of the amount sent.
The innovation.
Afrimarket provides a low-cost cash-to-goods service for sending remittances such as food products, sanitation products and construction materials to West Africa, serving as a compliment to traditional money transfer operators. The innovation increases remittance flows through reduced sender costs using a mobile, no-middleman model, and also increases trust levels by allowing users to send specific products to recipients or to make use of a voucher system.
GIF’s investment.
A $2.2 million preferred equity investment (as part of Afrimarket’s Series B equity round)
Investment objective(s).
Build out distribution operations and acquire new customers.
Why we invested
Unique solution applying an eCommerce approach to a development problem
Remittances are an important source of funds for GIF’s target beneficiaries
Significant traction with key cash-in partners
Strong team with significant logistical and eCommerce experience in Africa
Click here to read Afrimarket’s Impact Brief.
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