Africhange, a bootstrapped remittance company, has acquired an IMTO license for its Nigerian subsidiary. This license allows the subsidiary to process foreign currency transfers as it begins fundraising efforts. However, the license only allows inbound transactions, restricting holders from processing outbound transfers.
The startup will compete with at least 70 companies, including deep-pocketed competitors like Lemfi and Flutterwave, processing inbound forex transfers into the country. Africhange plans to stand out in the increasingly crowded remittance market with cheaper rates and faster services.
Since May, the central bank has issued over a dozen IMTO licenses as part of a push to increase the flow of foreign currencies into Nigeria. This surge in licensing led to a 585 million remittance flow in August , marking a 130 year-on-year increase.
We recognized in the central bank that certain things were not happening and that there was a need for the central bank itself to see what it could do with respect to encouraging inflows into the system. And Im happy to say that it has paid off, Yemi Cardoso, the CBN governor, said about the rise in IMTO licenses in September.
Nigeria is one of Sub-Saharan Africas largest remittance recipients, with remittances accounting for 38 of the regions 54 billion total in 2023, according to the World Banks Migration and Development Brief.
