Zimbabwean Blockchain Startup: Remittance to Migrants 

  • The Zimbabwean and South Africa-based startups launched a platform offering help and services to millions of immigrants in South Africa. 
  • The startups have presented this platform as a “first cross-chain collaboration between the two companies”. 
  • The purpose of this platform is to provide integrated digital identity and remittance services to those in need across South Africa. 

Many Zimbabweans and migrants of other ethnicities are facing adversities in parts of South Africa and neighboring regions. This is not just because of poor employment and appalling economic conditions in the region but also because of problems pertaining to the localities, the migrants come from. Due to this, Migrants are compelled to send a greater portion of their earnings back home. This can also be because of crop failure, critical conditions, health-related issues, or simply because of family emergencies. After sending most of their earnings to the family, immigrants are left with very fewer funds for themselves leading to hunger, homelessness, and poor health conditions. In such cases, remittances come as a life savior for many. 

The Zimbabwean Blockchain startup Flex ID and South Africa-based platform Udhuru wallet have, therefore, joined hands to create a support channel for these immigrant groups that need critical help. As both startups are blockchain related, they have come forward with an innovative way to use blockchain networks to provide help to those in need. 

Zimbabwean Blockchain Platforms providing Help and Services 

Though Blockchain networks mainly deal with cryptocurrencies and trade it is still a massive pool of resources and comes in handy when help is needed. Victor Mapunga, Co-Founder of Flex ID says “ 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.”

In order to send money to Zimbabwe anywhere from South Africa, it will cost between 5% to 20% just to transfer the amount. This gets concerning because South Africa is one of the biggest remittance providers in the sub-Saharan region. 

Identity Verification and Financial Services through Blockchain

It is one of the many boons of Blockchain technology that it is very much decentralized but at the same time, it is also considered authentic by a mass of people. Many migrants are denied access to healthcare and financial services because of their non-verified identity. However, through blockchain networks, they are identified as legitimate persons in the fraternity, and their identity is acknowledged making them eligible for health and financial services. 

This step towards bringing in remittances with the help of Blockchain platforms for the immigrants in the South African region is one of the most innovative ways to offer help in critical situations. It can also serve as an inspiration to more such platforms that are capable today to form partnerships with others. If continued for a reasonable duration, such partnerships can actually evolve into more fruitful and helpful networks where both the parties can benefit from each other.