XRP Just Solved a $30B Problem for Africa’s Remittance Market — Here’s How
- Mathew Jacob
- Jul 10, 2025
- 2 min read
For decades, sending money to Africa has been an expensive and inefficient process. With over $50 billion flowing into the continent annually in remittances—much of it from migrant workers abroad—this cash flow is a financial lifeline for millions. Yet the average cost of sending money to Sub-Saharan Africa remains the highest in the world, often reaching 7–10% per transaction.
In simple terms, billions of dollars are lost every year to fees, delays, and outdated infrastructure.
But now, a major breakthrough is underway.
XRP Enters the Scene
Ripple, the company behind the XRP Ledger, has launched several partnerships and technological solutions targeting one of the most pressing economic challenges in Africa. Leveraging its blockchain-based payments network, RippleNet, and XRP-powered On-Demand Liquidity (ODL), Ripple is transforming how money moves into and within Africa.
One of the most notable partnerships is with MFS Africa, a fintech giant connecting over 450 million mobile wallets across the continent. Through this alliance, Ripple is enabling faster, cheaper, and more transparent remittances—with settlements in seconds, and fees slashed to near-zero.
What XRP Solves
High Fees
Traditional systems like SWIFT and Western Union charge exorbitant rates. XRP-based transfers cost a fraction of a cent, making remittances far more affordable.
Slow Transfer Times
Bank wires often take 2–7 business days. XRP settles transactions in 3–5 seconds.
Lack of Access
Many rural areas in Africa lack proper banking infrastructure. RippleNet connects with mobile money systems, enabling borderless transfers even to unbanked communities.
Liquidity Bottlenecks
With ODL, there's no need to pre-fund foreign accounts. This reduces operational costs and unlocks real-time cross-border liquidity.
Real Impact, Real Stories
Platforms like PayAngel, Azimo, and others have already started using Ripple’s tech to power remittances to countries like Nigeria, Ghana, Kenya, Uganda, and South Africa. Users report faster transactions, higher reliability, and drastically lower fees.
If even a fraction of Africa’s $30B remittance market shifts to Ripple’s ecosystem, the savings could be worth billions annually—money that goes directly into the hands of families, farmers, students, and entrepreneurs.
What’s Next?
While XRP hasn’t entirely “solved” the $30B problem overnight, it has provided a game-changing infrastructure that is already operating at scale and growing fast.
As regulations continue to open up and adoption expands, Ripple’s XRP may soon power a new financial era for Africa—where remittances are instant, accessible, and affordable for everyone.
