Zimbabwean and South African blockchain startups, Uhuru Wallet and Flexid, are set to lessen the troubles encountered by migrants in the process of transferring funds across borders.
Both startups have launched a platform that provides digital identity and remittance services to migrants living and working in South Africa. Described by both startups as the “first cross-chain collaboration between the two companies,” the platform is set to alleviate the obstacles of transferring funds across borders.
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Uhuru Wallet, launched in 2020, is an initiative of Uhuru Innovative Solutions, founded in 2017. As reported by BitcoinKe.co, it is a convenient and efficient payment method running on Whatsapp and anchored on blockchain technology that enables people to transact easily and intuitively. Uhuru Wallet is built on the Stellar blockchain and holds an asset-backed digital token pegged to the South African Rand, the uZAR.
On the other hand, Flexid, founded by Victor Mapunga, was based because of the founder’s displeasure with a banking system that excludes those without identity documents. Thus, launching Flexid is Mapunga’s resolve to combat that problem. Flexid aims to build a decentralized marketplace of people and a stack of credentials one after the other as social mobility occurs. This will all take place on the Algorand Blockchain.
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Uhuru wallet and FlexID to explore Blockchain’s possibilities in Africa
Commenting on the newly established partnership, the CEO and founder of Uhuru Wallet Trust Jakarasi said:
“We are excited to partner with FlexID to offer our customers a more streamlined and secure remittance experience. By combining our strengths in digital identity and remittance services, we can better serve the needs of Zimbabwean immigrants in South Africa.”
Some of the challenges the two startups hope to overcome via the new partnership include “providing a seamless and secure remittance experience” for Zimbabwean immigrants. Through this working arrangement, the startups also hope to handle or overcome the problem of high sending fees, limited access to formal financial services, and identity verification issues.”
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Flexid’s CEO, Mapunga, commented on the features of blockchain and the importance of exploring the technology significantly. He said, “By leveraging blockchain technology, we can provide a secure and efficient way for users to verify their identity and access financial services, no matter where they are.” Across Sub-Saharan Africa, South Africa is ranked among the biggest senders of remittances. Usually, it costs between 5% and 20% to transfer money to Zimbabwe when it is done via money transfer agencies.
This cost has caused a rethink in the minds of Zimbabwean migrants who seek other alternatives, such as couriers or unregistered remittance platforms. This platform, jointly launched by Flexid and Uhuru, creates better options for Zimbabwean migrants and drastically reduces the average cost of remitting funds.
This initiative is mind-blowing and indicates how innovative tech startups in Africa are. The future of tech and blockchain in Africa is indeed promising. Other prevalent issues might get blockchain-based solutions in the near future.
Increasing these numerous blockchain services will further enhance the valuation and importance of digital assets. Also, the collaboration is a commendable achievement. Tech and blockchain startups in Nigeria, Ghana, Senegal, Kenya, and other African countries could learn from this partnership between Flexid and Uhuru.
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