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Pipit Global Enters 12 New African Markets with Cellulant

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International cash payments platform Pipit Global and pan-African payments company Cellulant have extended their partnership agreement to now include eighteen countries in Sub-Saharan Africa.

The partnership will see the companies providing both B2B and B2C payments services to existing and emergent financial institutions, eCommerce merchants, billers and billing platforms, mobile money providers and eWallets, digital financial service providers, and their customers.

Despite the Covid 19 pandemic, remittances into sub-Saharan Africa and intraregional SSA remittances have remained resilient. 

According to figures from the World Bank there was a modest decline of 1.4% in flows into SSA in 2020 – this figure excludes the exceptional case of Nigeria where economic factors beyond the pandemic affected remittances significantly. And in 2021 remittances have bounced back to near pre-pandemic levels with a year-on-year increase of 6.2% for the region.

This resilience demonstrates the fundamental importance of diaspora remittances to sub-Saharan African countries, which exceed Foreign Direct Investment and portfolio flows, and are approaching the levels of Official Development Aid.

However, the cost of remittances into Africa and intra-African remittances remains a significant challenge, a burden on senders and receivers, and a barrier to development.

Sub-Saharan Africa continues to have the highest average international remittance costs at 8.2%.  Intraregional remittance costs are higher still, with, as an example, the cost of a remittance of $200 dollars between Tanzania and Uganda costing an exorbitant 23%.

Pipit’s and Cellulant’s partnership will see the development of ‘for-purpose’ remittances. Rather than the traditional model of peer-to-peer cash remittances, migrants will be able to make bill payments and e-commerce transactions directly to suppliers.  This model ensures that bills are paid, and removes the potential for ‘leakage’ – where remitted money may not be used for its intended purpose.  It also reduces the receiver risk associated with cash collection.  And, in line with the goal to reduce remittance costs, the direct-to-biller model applies fees significantly lower than traditional remittance prices resulting in meaningful savings for remittance senders and receivers.

Commenting on the partnership, Pipit Global CEO Ollie Walsh said: “Pipit Global was founded on the basis of promoting collaboration in the world of payments. Making cash a core element of the digital economy, whilst maintaining that cash economy and giving the ability to transition between the two, gives real parity and freedom, and ultimately creates the social impact that drives global development and equality.

“Our partnership with Cellulant will turn these development and equality goals and aspirations into tangible realities.”

The expansion into the new markets comes just 5 months after the two companies announced a partnership to enable remittances into Nigeria, Kenya, Uganda, Tanzania, Mali, Senegal, and Ghana at lower rates.

“At Cellulant, we see digital payments as a significant opportunity to create transformational change for businesses, households and economies at large, ” said David Waithaka, Cellulant’s Chief Business Officer for Enterprise.

Speaking to the partnership, he added “International and intraregional remittances are an engine for growth for many economies in Africa providing resilience to financial shocks and improving livelihoods. Enabling lower rates and powering for-purpose remittances for us is about the direct impact on people’s lives.”

Technology and digital payments have been identified as a driver in reducing transaction costs of remittances to less than 3% by 2030 as outlined in SDG 10 enabling reduced inequalities within and among countries.

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Schneider Electric Targets 900m Africans With Sustainable Energy Solutions

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Schneider Electric said it is targeting 900 million Africans including 95 million Nigerians with universal access to sustainable energy solutions in rural communities by fostering a greener and more resilient future.

The global energy provider said it is committed to providing access to clean electricity to 50 million by 2025, and 100 million by 2030. To date, 46.5 million people have already benefited from Schneider’s energy access solutions.

The country president, Schneider Electric West Africa, Ajibola Akindele, speaking at the Energy Access Investment Forum (EAIF) conference, held in Lagos, recently, said they have a wide range of Access to Energy solutions suitable for electrifying small homes and micro-enterprises, fundamental public services, up to villages and communities.

“Our mission is to be a global digital partner for sustainability and efficiency, empowering all to make the most of our energy resources, bridge progress and sustainability for all. At Schneider Electric, we call this Life is On,” he said.

Director MEAS, Access to Energy, Schneider Electric, Thomas Bonicel, speaking on Schneider Electric’s Access to Energy (A2E) program, emphasized the program’s mission to empower communities through clean and reliable energy access including training & entrepreneurship programs, social & inclusive business, and investment funds.

“There are over 700 million people across the world without access to energy, 600 million in Africa and 95 million in Nigeria; at Schneider Electric, we have decided to deploy our Access to Energy solutions in Nigeria.

“Our major KPI is the impact measured by the quantity of connected people and with Villaya Flex, our latest innovation, we are ready to support independent electricity access and renewable energy adoption in remote villages and off-grid communities,” he said.

The commercial leader, Microgrid, Schneider Electric, Teina Teibowei, said, Villaya Flex, a packaged, comprehensive microgrid solution, is specifically designed for rural, off-the-grid communities and aims to ensure a dependable and sustainable energy supply to meet daily needs and power productive economic activities in these

Teibowei also noted the Nigerian government and the World Bank’s joint efforts to extend electricity access to rural Nigerian villages, adding that  Schneider Electric’s Villaya Flex microgrid solution is well-positioned to tackle the electrification challenges of these remote communities, potentially serving as a valuable asset for the World Bank’s Nigeria Distributed Access through Renewable Energy Scale-up (DARES) project.

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Africa Region

Mastercard and Payment24 to Boost EMV Adoption in Africa, Others

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Mastercard and Payment24 are extending their engagement across Eastern Europe, Middle East and Africa (EEMEA) to help bolster security and drive innovation within the fleet and fuel payment industry across the region.

The EMV standard, now being implemented in over 80 markets, has dramatically reduced the incidence of counterfeit card fraud associated with magnetic strip cards, saving hundreds of millions in potential losses.

This partnership not only drives innovation in the fleet and fuel payments sector, but also aims to speed up the transition to the secure EMV standard and help fleet operators reduce the risk of fraud associated with magnetic strip fleet cards.

This expanded collaboration extends the geographical reach of a proven solution and delivers modern fleet and fuel payment solutions to banks and fleet card issuers throughout the region. While drivers benefit from a quick, secure, and seamless way to make payments, fleet operators can now monitor driver spending in real-time, set expense limits, and minimize the need for cash.

“By combining Mastercard’s leading payment technology with Payment24’s innovative and proven fuel payments platform, we deliver a solution for the region that enhances security and adds significant value and convenience for customers,” said Clyde Rosanowski, Senior Vice President of Commercial Solutions, EEMEA at Mastercard.

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WATRA Advocates E-Governance and Technology to Boost Jobs for Youths In Nigeria, W/Africa

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WEST Africa Telecommunications Regulators Assembly (WATRA) has advocated greater adoption of e-Governance and concerted effort to expand the digital economy in Nigeria and other countries of West Africa. 

The executive secretary of WATRA, Aliyu Yusuf Aboki stated that this will boost investment and create quality jobs for young people in Nigeria and West Africa. He stated that despite the comparatively low rate of literacy in West Africa, there is a very wide scope for digitizing government services. 

He said he sees the enormous opportunity for e-governance as he travels across the 15 ECOWAS states. He explained that governments at all levels could increase their taxes dramatically by digitizing the identities of taxpayers and tax collection processes. He also emphasized that there is a great opportunity to expand access to education and healthcare through digital tools. 

 WATRA is a regional organisation that has the mandate to promote the adoption and harmonization of regulations that stimulate investment in telecommunications and increase affordable access for citizens.

 The WATRA boss cited the example of India where over 1 billion citizens, including the poorest citizens, could easily receive or make payments using their telephones through a government-supported platform, the Unified Payments Interface (UPI).

 Other government-backed digital schemes in the country enable municipal governments to manage healthcare online and citizens to store and readily access government documents such as tax returns on their phones. 

Aliyu pointed out that the digitalization of government services has transformed the lives of the 273 million Indians who are classified as living in poverty. While noting progress in the adoption of ICT to deliver and manage government services in West Africa, the WATRA boss emphasized the need to scale up existing schemes in the sub-region. 

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