06 March 2023
Mama Money, a fintech offering cross-border money transfers and banking services has joined forces with TNM.
This partnership allows Mama Money customers to easily send money to any TNM Mpamba account for cash collection at over 40,000 locations across Malawi, with no cashout fee for the recipient.
It’s estimated that the monthly remittance flows from South Africa to Malawi are over US$20 million through both formal and informal channels, according to research by Finmark Trust.
Beyond the impact on economic growth, remittances are crucial for supporting fundamental needs such as healthcare, housing, and education. Yet South Africa is one of the most expensive countries to send money from. In 2015 the average cost of sending money from South Africa was 14%. Today, the average cost of sending money from South Africa is 7%, which is much closer to the worldwide average of 6%.
“We have made a lot of progress in bringing down the cost of money transfers, but there is still more we can do to support the Malawian community in South Africa,” said Nicolas Vonthron, CEO at Mama Money. “We want to reduce the cost even further and offer a super reliable service. Our partnership with TNM will help us achieve this and we’re extremely excited to see the impact this will have for people who need an easier way to send money to Malawi.”
“With our Mpamba network covering over 90% of Malawi, it makes it extremely easy and convenient for people to collect their cash no matter where they are in the country, and we are continuously expanding our network and agent coverage,” said Christopher Sukasuka, general manager at TNM Mpamba Limited.
Together, Mama Money and TNM are improving access to critical financial services in underserved communities in both South Africa and Malawi by making it easier, faster, and more affordable to send and receive money.