Remittance startup Lemfi suspends operations in Ghana

November 28, 2023
Lemfi suspends operations in Ghana
Ridwan Olalere and Rian Cochran, co-founders of LemFi. Photo courtesy of LemFi

Lemfi, the remittance startup that recently secured $33 million in a Series A funding round, has temporarily halted its operations in Ghana, just a week after the raised concerns about the company operating without regulatory approval.

In a notice to its customers, Lemfi stated, “LemFi users will be unable to send money to banks and in Ghana.”

 Lemfi suspends operations in Ghana

The suspension comes after the Bank of Ghana identified Lemfi as one of eight remittance companies operating without regulatory approval, cautioning the public against using these unapproved providers.

Ghana's Foreign Exchange Act empowers the regulator to impose fines on companies operating without approval, with the possibility of imprisonment also outlined as a consequence.

While the exact launch date of Lemfi in Ghana remains unclear, the startup has taken significant steps to establish its presence in the country.

In January 2023, Lemfi named Efia Odo, a popular actress and influencer, as its brand ambassador.

Additionally, the company appointed a country manager and intensified its marketing efforts within the Ghanaian market.

According to sources familiar with Lemfi's operations, the company plans to engage with Ghanaian regulators to address the concerns raised, following a similar approach to its dealings with Nigerian authorities before obtaining an International Money Transfer Licence (IMTO).

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