Tuesday 19th March, 2024
Kuda Technologies, the umbrella organization for Kuda Bank, is broadening its horizons with newly acquired payment licenses in Tanzania and Canada. This strategic move is part of Kuda’s ambitious plan to extend its footprint across Africa and into the global marketplace.
The Canadian license is particularly noteworthy as it enables Kuda to provide remittance and multi-currency wallet services to the African diaspora residing in Canada. Concurrently, the Tanzanian Payment Service Provider (PSSP) license will empower Kuda to offer analogous services to its customers in Tanzania.
The remittance sector has garnered increasing interest from investors, especially as a growing number of Nigerians and other Africans relocate abroad in search of better opportunities. In 2022, Nigeria emerged as the fourth-largest source of immigration to Canada, with 22,085 Nigerian immigrants comprising 5.06% of the total number of new permanent residents in Canada. Additionally, the Canadian Nigerian community is substantial, with over 100,000 individuals of Nigerian heritage residing in Canada. The same year witnessed remittance inflows to Africa reaching an estimated $100.1 billion, which represents 3.4% of the continent’s GDP.
Kuda’s focus on markets with a burgeoning Nigerian migrant population, such as Canada and the UK, presents a significant opportunity to enhance its foreign exchange revenue. This is particularly timely as fluctuating foreign exchange rates are impacting the profitability of startups. By tapping into these growing migrant communities, Kuda is well-positioned to capitalize on the increasing demand for remittance services and fortify its market presence.
ODBA champion visionary founders who leverage technology to craft extraordinary success stories. Our portfolio boasts investments in 18 technology companies spanning 10 countries, generating more than 1,500 direct jobs and serving a vast community of over six million users and customers. We take immense pride in the profound impact our portfolio companies have already achieved across the continent and eagerly anticipate future contributions to the transformative landscape of Africa.