Boost access to international remittances in Africa

To boost access to affordable remittances and support livelihoods and business activity in countries across Africa, IFC today announced a financing package for TerraPay, an Africa-focused digital payments provider.

IFC arranged a $75 million financing package for TerraPay, which includes a $30 million loan from IFC’s own account, a B Loan of $15 million provided by impact investor ILX, and a combined parallel loan of $30 million from the OP Finnfund Global Impact Fund I and BIO.

The financing will help TerraPay expand its operations by partnering with more global money transfer operators and by increasing the volume of transfers it processes across Africa. The expansion will help reduce the costs, enhance speed, and simplify international remittance transfers.

In Africa, TerraPay customers can send money from 41 countries and receive from 40. African customers can not only send and receive funds within Africa, but also to and from markets across Europe and Asia.

"Our association with IFC goes back a long way and as we continue our journey towards growth, their support continues to be invaluable. This has fuelled our mission, enabling us to strengthen our infrastructure, expand our network and invest deeply in technology and solutions that solve real-world problems," said Ambar Sur, Founder and CEO for TerraPay. "As we deepen our partnership, I look forward to furthering our common vision to boost financial inclusion and accessibility, empowering families, individuals, and businesses across the African continent leveraging our vast global payments network."

"At IFC, we are committed to creating opportunities for inclusive growth in Africa, including by leveraging digital solutions to bridge financial gaps and improve livelihoods," said Aliou Maiga, IFC's Regional Industry Director for the Financial Institutions Group for Africa. "Through this partnership, we aim to support a robust digital payment infrastructure that empowers individuals and small businesses."

TerraPay streamlines the remittance process by integrating and connecting major markets and money transfer operators such as Western Union, MoneyGram, and Ria, supporting household incomes, small businesses, and contributing to overall economic development.

In 2019, IFC invested $8 million as part of the Series A funding round for TerraPay. The investment announced today aligns with the World Bank Group' goal of achieving universal access to financial services, which is crucial for improving the lives of disadvantaged and vulnerable populations.