In a significant move to enhance access to affordable remittances across Africa, the International Finance Corporation (IFC) has unveiled a substantial $75 million financing package for TerraPay, a leading digital payments service focused on the continent. The financing comprises a $30 million loan from IFC’s own account, a $15 million B Loan from ILX under IFC’s B Loan Program, and a parallel $30 million loan from development finance institutions OP Finnfund Global Impact Fund I and BIO.
According to IFC, this funding will enable TerraPay to expand its operations significantly, fostering new partnerships with global money transfer operators and increasing the volume of transfers processed throughout Africa. This expansion aims to reduce costs, enhance transaction speed, and simplify international remittance processes, thereby benefitting millions of users across the region.
This latest financing initiative builds upon IFC’s prior support, including an $8 million contribution to TerraPay’s Series A financing round in 2019. TerraPay currently facilitates money transfers to 41 countries from Africa and allows recipients to receive funds in 40 countries, facilitating seamless financial connectivity across continents.
Ambar Sur, Founder and CEO of TerraPay, expressed gratitude for IFC’s longstanding partnership and reiterated the pivotal role their support has played in TerraPay’s growth journey. He highlighted how this backing has empowered TerraPay to strengthen its infrastructure, expand its network, and invest in cutting-edge technology to address real-world challenges in digital payments.
Aliou Maiga, IFC’s Regional Industry Director for the Financial Institutions Group for Africa, emphasized IFC’s commitment to fostering inclusive growth in Africa through digital solutions. Maiga underscored the partnership’s objective of bolstering a robust digital payment ecosystem that empowers individuals and small businesses alike, contributing to economic resilience and development.
The collaboration between IFC and TerraPay underscores a shared vision to leverage digital innovation for financial inclusion and economic empowerment across Africa. As TerraPay continues to scale its operations with IFC’s support, the impact on enhancing financial access and reducing transaction costs is expected to be profound, paving the way for broader economic participation and prosperity.
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