To enhance access to affordable remittances and support livelihoods and business activities across Africa, the International Finance Corporation (IFC) has announced a significant financing package for TerraPay, an Africa-focused digital payments provider. This strategic move is set to transform the remittance landscape, making transactions more efficient and accessible.

The IFC has arranged a $75 million financing package for TerraPay, comprising:

  • A $30 million loan from IFC's own account
  • A $15 million B Loan provided by asset manager ILX under IFC's B Loan Program
  • A combined parallel loan of $30 million from development finance institutions OP Finnfund Global Impact Fund I and BIO

This funding will enable TerraPay to expand its operations, forge new partnerships with global money transfer operators, and increase the volume of transfers processed across Africa.

Expanding Operations and Enhancing Remittances

With this expansion, TerraPay aims to reduce costs, enhance the speed of transactions, and simplify the process of international remittance transfers. Currently, TerraPay customers in Africa can send money from 41 countries and receive funds from 40 countries. This network allows for seamless transfers not only within Africa but also to and from markets in Europe and Asia.

TerraPay’s Commitment to Growth and Financial Inclusion

Ambar Sur, Founder and CEO of TerraPay, emphasized the importance of IFC's support: “Our association with IFC goes back a long way and as we continue our journey towards growth, their support continues to be invaluable. This has fueled our mission, enabling us to strengthen our infrastructure, expand our network, and invest deeply in technology and solutions that solve real-world problems. As we deepen our partnership, I look forward to furthering our common vision to boost financial inclusion and accessibility, empowering families, individuals, and businesses across the African continent leveraging our vast global payments network.”

IFC's Vision for Inclusive Growth

Aliou Maiga, IFC's Regional Industry Director for the Financial Institutions Group for Africa, highlighted IFC's commitment: “At IFC, we are committed to creating opportunities for inclusive growth in Africa, including by leveraging digital solutions to bridge financial gaps and improve livelihoods. Through this partnership, we aim to support a robust digital payment infrastructure that empowers individuals and small businesses.”

Streamlining Remittance Processes

TerraPay enhances the remittance process by integrating and connecting major markets and money transfer operators such as Western Union, MoneyGram, and Ria. This integration supports household incomes, small businesses, and contributes to overall economic development across the continent.

A History of Investment and Future Goals

In 2019, IFC invested $8 million in TerraPay as part of the Series A funding round. The current investment aligns with the World Bank Group's goal of achieving universal access to financial services, which is crucial for improving the lives of disadvantaged and vulnerable populations.