CEO and co-founder, Eghosa Nehikhare, enunciates MultiGate’s regulatory approval for remittances into Kenya

In this interview with Multigate CEO Eghosa Nehikhare, he discusses their expansion into East Africa through their attainment of regulatory approval to partner with a Kenyan bank to facilitate remittances into the country. He also shares insights into how they have refined their operational efficiency to deliver value to their partners. Additionally, Nehikhare highlights the importance of the region and the African Continental Free Trade Area (AfCFTA).

Please tell us about Multigate… 

Multigate is a licensed treasury management technology company that delivers secure and innovative digital solutions to address the complex financial needs of corporates and financial institutions. Founded in 2017, Multigate advances the African economy by enabling seamless and instant transactions for our partners in African markets, trading regionally and globally. We operate in the United Kingdom, Canada, and Sub-Saharan Africa. Our innovative digital solutions include:

* Cross-Border Payment Rails Solution

* FX Conversion Solution

* Multi-Bank Connector Solution

* Automated Reconciliation Solution

What does attaining regulatory approval for remittances into Kenya mean for Multigate?

This regulatory approval to partner with a Kenyan bank to facilitate remittances into the country moves us closer to achieving our vision, i.e., enabling seamless and instant transactions for our partners in African markets trading regionally and globally. It also contributes to our goal of delivering secure and innovative digital solutions for corporates and financial institutions in the following ways:

Expand presence in East Africa: This regulatory approval from the Kenyan regulator, in addition to our Ugandan Money Remittance Business License, allows us to expand our coverage in the East African region, an important region for our Pan-African strategy. This regional strategic goal is pivotal because it will enable us to achieve our vision and mission to our partners.

Deliver secure Treasury Management solutions: One of our goals is to deliver secure digital solutions. This regulatory approval enables us to achieve this because our solution will align with the regulatory KYC and AML-CFT guidelines of the Central Bank of Kenya.

Deliver innovative digital solutions: Our solutions must be innovative. If it is not innovative, we will not build it. This approval will allow us to achieve this objective by utilising our SWIFT L2BA platform and the cross-border payment rails that connect us to all banks (regionally and internationally).

You recently announced that you are the first pan-African company to become a SWIFT Partner. How does this impact Multigate and its businesses?

In 2022, Multigate qualified as a SWIFT Compatible Application provider but has now obtained its L2BA certification. This further validates Multigate’s capacity to offer a globally recognised multi-bank connector solution that is standardised, safe, and secure for its clients and partners. As we seek to address the treasury/cash management needs of African corporates and financial institutions both regionally and globally, our multi-bank connector solution enables their clients to aggregate all accounts for seamless transactions. It avoids the complexities associated with managing multiple banking portals. This global certification also allows Multigate to connect seamlessly with banks across the SWIFT messaging network.

You mention safety and security a lot. How have you ensured the safety and security of your platforms?

We were pleased to have obtained the highest level of compliance through three certifications: ISO 20000, 22301 & 27001, particularly in the areas of Information Security Management System, Business Continuity Management System, and Information Technology Service Management System.

The three ISO certifications demonstrate Multigate’s significant commitment and excellence in the organisation’s operations. The attainment of ISO 20000 signifies that the company adheres to international best practices in service management. ISO 22301 certification highlights Multigate’s commitment to maintaining business continuity even in the face of unexpected disruptions. The ISO 27001 certification exemplifies Multigate’s rigorous approach to information security management systems.

Your East Africa expansion programme has been rapid following the recent acquisition of a Money Remittance Business license by the Bank of Uganda, and now this regulatory approval in Kenya. Why is this region important for Multigate?

Let me take this opportunity to thank the Central Bank of Kenya for the diligent and rigorous review process they took us through to ensure we met all requirements. We have always seen Kenya as an important market for our operations. The clearance by the Kenyan Asset Recovery Authority (ARA) in 2022, with all cases regarding our operations and Directors being dropped, effectively clearing the company of any allegations and confirming our good standing, has demonstrated the understanding of the Kenyan government of the importance of the remittance industry in advancing Kenya’s, and Africa’s economy at large.

According to data from the World Bank, remittances have become the most important foreign exchange earner in several countries. For Kenya, remittances are more significant than the country’s key exports, including tourism, tea, coffee, and horticulture. For Uganda, remittances contributed $ 1.1 bn to Uganda in 2022. The country’s remittance growth rate is predicted to double that of Nigeria, which currently stands at 38% of remittances in Sub-Saharan Africa.

This presents immense opportunities for the remittance sector in the country, making Kenya and Uganda important markets for Multigate’s regional expansion.

What is next for Multigate, considering the vast opportunity presented by the African Continental Free Trade Agreement (AFCFTA) for cross-border trade?

Our growth plans for the next couple of years are centred around expanding our operations across Africa and increasing our partnerships with African corporations and financial institutions. Additionally, we will continue to innovate and invest in our solutions to provide better solutions to our partners. We aim to be Africa’s leading treasury management technology company by enabling seamless and instant transactions for organisations in African markets trading regionally and globally.

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