Picture this: You’re in London, Atlanta, or Toronto, scraping together $200 to send home to Lagos, Nairobi, or Harare. It’s for your mom’s medicine, your nephew’s school fees, or just to keep the lights on. You tap “send” through a service like Western Union or MoneyGram, and bam, $16 or more disappears into fees. That’s money that could have paid for a week’s groceries. If you’ve felt that sting, you’re not alone. Sending money to sub-Saharan Africa costs more than anywhere else on Earth, 8.37% on average, says the World Bank. In some cases, like Tanzania to Kenya, fees can swallow 33%. It’s a huge blow for families who count on every dollar.
But here’s the good news: Africans are fighting back. Across the continent—from Zimbabwe to Tanzania to Nigeria—a new wave of local tech wizards is shaking up the game. They are building apps and services that cut fees, reduce middlemen, and leave more of your hard-earned cash where it truly belongs: with your people. This goes way beyond just saving a few bucks. When more money arrives in African communities, rather than in some big company’s pocket, it fuels families, small businesses, and entire economies. And you, the diaspora, stand at the center of it all.
The Price We Pay
Let’s break it down. At an 8.37% fee, for every $100 you send, you lose over $8 before it even lands. Some folks still stuff cash in envelopes or rely on cousins to carry it home, just to dodge those fees. It’s not just about big, flashy transfers; sometimes it’s $50 here, $100 there. Those small amounts add up, especially when your family back home is relying on that money to survive or keep a business afloat.
The World Bank calls sub-Saharan Africa the world’s most expensive place to send money. Part of that is because many of us still prefer cash, which requires store clerks, physical branches, and armored trucks to move bills around. “Cash requires a big physical setup. That costs money,” says Andy Jury, CEO of Mukuru, a major remittance player started by a Zimbabwean who knows the struggle firsthand.
The African Tech Takeover
Here’s the exciting part: African innovators are stepping up to change all this. From Mukuru to NALA to Flutterwave, these companies were founded by Africans, for Africans. NALA, launched by Tanzanian entrepreneur Benjamin Fernandes, made headlines by raising $40 million last year. Flutterwave, led by Nigerian CEO Olugbenga ‘GB’ Agboola, is now valued at $3 billion.
“Our mission has always been to simplify payments for endless possibilities. By making it easy for Africans to receive money instantly from anywhere in the world, we’re not just building a business—we’re building a bridge for global commerce,” says Agboola, highlighting Flutterwave’s big vision.
What’s their secret? They skip the long chain of banks, traders, and hidden fees. “We’re cutting out two steps, sometimes five or six,” explains Nicolai Eddy of NALA. These fintechs hold cash in each country, so your money goes directly into a bank account or a mobile wallet. No more middlemen taking a cut. It’s faster, more efficient, and tailored for African realities.
Why Regulation and Policies Matter
Of course, governments and banks aren’t just sitting on the sidelines. Sometimes they help; sometimes they make things harder. A few years ago, Nigeria’s Central Bank introduced the “Naira 4 Dollar Scheme,” which gave recipients extra naira for every official dollar transfer. This was meant to encourage people to use legal channels instead of informal ones.
Small Businesses on the Rise
Remittances don’t just pay for food or school fees; they also seed local businesses. In many parts of Africa, small shops, farms, and corner stalls grow thanks to diaspora money. Suddenly, you’re not just supporting your family, you’re helping your hometown thrive.
Cash vs. the Future
So why are we not all going digital? Part of it is trust, especially for older folks. Still, every success story helps build confidence. If you show your dad or auntie that the money you sent with a single tap arrived in seconds, they might give it a shot too. That’s how trust spreads—one user at a time, often through word-of-mouth or local agents.
Your Money Moves Mountains
Remittances are huge-$54 billion sent to sub-Saharan Africa in 2023 alone. In countries like Gambia, Lesotho, and Comoros, it’s over a fifth of the entire economy. “Remittances don’t just help, they stay steady when everything else crashes. They’re a lifeline,” says Christian Kingombe, who once worked at the African Development Bank. And he’s right: when foreign investments shrink or donor aid dries up, diaspora money keeps flowing.
Lower fees could multiply this impact. Imagine an extra $5 or $10 stays with your family instead of leaving with some big company. Multiply that by millions of senders, and you’re looking at billions reinvested in African homes, businesses, and communities. That’s real power.
Local Partnerships & Agent Networks
Innovation isn’t only about flashy apps. Many of these fintechs also partner with mobile networks, microfinance banks, and local shops. This helps them reach people in rural areas who don’t have smartphones or constant internet. Services like Paga in Nigeria, led by Tayo Oviosu, rely on a mix of digital tools and on-the-ground agents.
“I started Paga to make it easy for people to transfer and leverage money for basic every day needs. My reason was simple — I was frustrated carrying cash around with me. Why was it so difficult to send money to my friend who spotted me for lunch, or to my cook to make me some banga soup? Why did I need to leave my date at the restaurant and drive to 4 ATMs before I found one that worked? Or after patiently waiting on a long queue in the supermarket realize the POS doesn’t work! It just did not make sense to me!, said Oviosu.
How You Can Join the Wave
So, what can you do? Next time you send money, try a local fintech option. Mukuru offers both cash and digital channels. NALA is all-digital and lightning-fast. Flutterwave connects dozens of payment methods across Africa. Ask your family if they have a mobile wallet—chances are they do, even if they go offline sometimes. By making the switch, you keep more money in African hands and support homegrown businesses instead of the old giants.
This movement isn’t just about technology. It’s about your power. Every dollar you send can be a vote for more fairness and less exploitation. The African Development Bank notes,
“Diaspora remittances are a stabilizing force that can accelerate Africa’s growth, especially if paired with smart financial innovation.”
In other words, the money you send home can change far more than one family’s monthly bills.
The Tidal Wave Coming
This is your story. Every time you send money home, you’re doing more than helping out—you’re fueling a revolution. African founders are proving we don’t have to depend on Western Union or MoneyGram anymore. They’re building something for us, by us.
So next time you send that $200, remember: you’re not just helping your loved ones. You’re steering the future of African finance. You’re turning your money into power—for your family, for your community, and for the continent. It’s a big responsibility, but it’s also a thrilling chance to spark change from thousands of miles away.
Go on and claim it. Because if anyone can do it, it’s you.
