Afriex expands banking network as African remittance costs remain elevated

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LAGOS – Afriex has strengthened its international payments infrastructure through a partnership with Global Innovations Bank, seeking faster settlement and regulatory coverage in a region where cross-border transfers remain expensive.

The company, which says it processes over $600mn annually, will use GIB as a sponsor and settlement bank. The agreement gives clients access to US dollar accounts and supports transfers across more than 35 countries. Financial terms were not disclosed, and Afriex did not quantify reductions in settlement times or costs.

Founded as a consumer remittance service, Afriex now provides payment technology to fintechs, banks, ecommerce platforms and payroll operators. Its interface connects payment rails with international banks, reducing the need for customers to establish infrastructure in each market.

The arrangement, effective since the second quarter, complements Afriex’s relationships with Choice Bank in Kenya and United Bank for Africa in Nigeria. It also supports plans to add treasury and foreign-exchange services next year.

The market is substantial. Global remittance flows reached an estimated $856bn in 2024, including $653bn sent to low- and middle-income countries, according to the World Bank. Sub-Saharan Africa received $55bn, but remained the costliest destination. Sending $200 to the region cost an average 8.4 per cent, compared with a global rate of about 6.4 per cent.

World Bank research indicates that access to fast-payment systems can reduce the cost of a $200 remittance by between 0.3 and one percentage point. Afriex’s challenge will be demonstrating whether its banking network produces comparable gains for customers while sustaining compliance across jurisdictions.