Zimbabwean blockchain startups launch platform that offers digital identities to migrants
Flex ID and Uhuru Wallet have recently launched a platform that offers digital identity and remittance services to migrants living and working in South Africa.
By Staff
The Zimbabwean blockchain startup Flex ID and the South Africa-based Whatsapp remittance platform, Uhuru Wallet, recently announced that they have launched a platform that offers combined digital identity and remittance services to millions of Zimbabwean immigrants in South Africa.
According to their statement, the two startups hailed what they described as the first cross-chain collaboration between the two companies.
According to the statement, whereas the Uhuru Wallet is based on the Stellar blockchain, Flex ID, which was co-founded by Victor Mapunga, uses the Algorand blockchain.
Commenting on the partnership, Trust Jakarasi, the CEO and founder of Uhuru Wallet, 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 which the two startups are hoping to overcome through 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, as well as identity verification issues.
Speaking about the importance of leveraging blockchain technology, Mapunga stated, “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.”
Although South Africa is ranked among the biggest senders of remittances in sub-Saharan Africa, it costs anywhere between 5% and 20% to send money to Zimbabwe when using registered money transfer agencies. As a result, many migrants from Zimbabwe are compelled to use unofficial remittance platforms or courier services as alternatives.
The development of a blockchain-based system gives Zimbabwean migrants more options and probably will lower the average cost of money transfers.
