Ghanaian fintech Zeepay acquires 51% stake in Zambia’s Mangwee Mobile Money

Ghanaian fintech company Zeepay has made a significant move in the African financial market by acquiring a 51% stake in Zambia's Mangwee Mobile Money through a private placement. The acquisition is part of Zeepay's strategic expansion plan to tap into the Southern African market, leveraging its existing presence in ten African countries. Zeepay's Founder and Managing Director, Andrew Takyi-Appiah, highlighted the importance of this deal, emphasizing the strategic positioning it offers in the region. With businesses in Mozambique, Zimbabwe, and now Zambia, Zeepay gains access to key markets, including Malawi, Angola, and the Democratic Republic of Congo. This move not only strengthens Zeepay's foothold in Southern Africa but also paves the way for future growth opportunities within the region. Zeepay's unique value proposition lies in its specialization in remittances to mobile wallets, a key segment in the African fintech sector. By focusing on facilitating remittances from around the world into mobile money wallets in Africa, Zeepay has established itself as a significant player in the market. In the past year alone, the company processed over $400 million on the continent, with expectations to reach $500 million in Southern Africa. This strategic focus on remittances into mobile wallets positions Zeepay as a key player in enabling efficient and cost-effective cross-border transactions, ultimately enhancing financial inclusion and accessibility for users across the region. The acquisition of a majority stake in Mangwee Mobile Money marks a notable milestone for Zeepay as an African fintech company. This move is particularly significant as it represents a rare occurrence of two African entities coming together in a strategic partnership within the fintech space. Traditionally, acquisitions in the African financial sector have involved foreign companies taking control of local businesses. However, Zeepay's successful acquisition underscores the evolving landscape of African fintech, where local players are increasingly recognizing the value of collaboration and consolidation to drive growth and innovation. Looking ahead, Zeepay has ambitious plans for further expansion within the African fintech market. The company aims to close four to five additional deals this year, pending regulatory approval, to solidify its position as a key player in the industry. With a focus on controlling the wallet ecosystem within the continent, Zeepay is poised to capitalize on the growing remittances market in Africa, which amounts to $70 billion annually. By aiming to capture 60-70% of this market share over the next three years, Zeepay is aligning its strategies to capitalize on the immense growth potential within the African fintech landscape. In terms of industry outlook, Zeepay is optimistic about the future of the African payments sector. With a strong first quarter performance and a solid trajectory of growth, the company is well-positioned to drive significant changes in the payment landscape across the continent. By reaffirming its market leadership in key regions such as Ghana and Ivory Coast, and expanding into emerging markets like Cameroon and Gabon, Zeepay is poised to shape the future of financial transactions in Africa. As Zeepay continues to innovate and expand its reach, the company is set to play a pivotal role in transforming payment mechanisms and fostering greater financial inclusion across the African continent.