Money transfer company Zepz – formerly known as WorldRemit – is looking for more acquisitions and tech talent in Africa.
Zepz recently acquired IMGN Technologies, a South Africa-based software development company with 31 software engineers.
Terms of the acquisition were not disclosed.
London-based money transfer company Zepz is set to play an important role in supporting the 2023 client acquisition and retention plans with its investment in technical talent in Africa.
Zepz, which operates through WorldRemit and Sendwave, says it is committed to growing its footprint, introducing new products, and optimising them on the African continent.
Mark Lenhard, CEO of Zepz, revealed in an interview with TechFinancials that: “We are definitely looking for more opportunities to expand our network and channels.”
The increasing numbers of remittances to Ghana, Cameroon, South Africa, and Nigeria indicate that African countries represent a great opportunity from a strategic perspective.
Lenhard said Zepz acquired IMGN Technologies to boost its recruitment efforts, especially in terms of products and technical talent.
“We will redouble our efforts and continue to hire so that we can effectively serve our markets,” Lenhard said.
“We will strive to provide products and services that will serve the world from SA.
“The only way we can really serve our customers well is to employ some of them. We have found phenomenal talent in South Africa.
“We will probably hire 75 more people, mainly in Johannesburg and Cape Town.”
In 2022, almost $11 billion of remittances were sent via Zepz. In contrast, over $9 billion remittances were received in the same period.
The number of remittances received increased by almost 6 million from 2021 to 2022.
Lenhard said the increasing number of remittances received in Ghana, Cameroon, South Africa, and Nigeria indicate the massive opportunity African countries offer “from a strategic perspective”.
In that regard, Lenhard said South Africa will be a future market for Zepz.
He said Zepz will continue to expand its offering to South Africans (domestic and international) as a sending market for remittances.
On the sending side, Zepz tokens are 100% digital (cashless), which increases convenience and improves security.
The digital cross-border payments platform operator is considering the expansion of its office space in SA.
“We have an office in Johannesburg, which we will probably have to relocate due to our growth, but next year we will probably have more space available in both Cape Town and Johannesburg,” Lenhard said.
“It depends on what our staff are looking for.”
The high number of immigrants in SA is a boon for the money remittance business.
South Africa has the highest number of immigrants among all African countries.
In 2020, the number of immigrants in SA was estimated at 2.9 million people.
Ivory Coast follows with 2.6 million immigrants.
Zepz is targeting this growing market.
“South Africa is an important market for us and we believe it offers great growth opportunities,” Lenhard said, adding that SA was a very important talent hub for Zepz in the context of the IMGN Technologies deal.
In addition, Lenhard said Zepz wants to make sending money easier and transparent for everyone.
The company is focused on organic growth as it has a presence in many African countries.
“Our top priority is organic growth. We are now present in many African countries, but it is a huge market with so many opportunities,” said Lenhard.
Remittances are an important source of household income for low- and middle-income countries.
The World Bank says remittances alleviate poverty, improve nutrition, and are associated with higher birth weight and school enrolment rates for children in disadvantaged households.
The World Bank also says remittances help beneficiary households build resilience by, for example, financing better shelter and coping with post-disaster losses.
Zepz has been promoting financial inclusion and contributing to growth in Africa for many years.
“I strongly believe that remittances are a way to boost the economy,” said Lenhard.
