Nigerian co-founded payment service startup, LemFi, has halted its operations in Ghana just one week after the country’s Central Bank declared that the company was operating without regulatory approval.
In a notice to its customers, Lemfi stated, “LemFi users will be unable to send money to banks and mobile money in Ghana.” This move follows the Ghanaian Central Bank’s decision to bar eight remittance companies, LemFi included, from payment services earlier this month.
Under Ghana’s Foreign Exchange Act, the Bank of Ghana has the authority to impose fines on companies operating without approval and can even go as far as pursuing imprisonment in certain cases.
Although the exact launch date of LemFi in Ghana remains unclear, the company had named actress and influencer, Efia Odo, as its brand ambassador in January 2023. In addition, LemFi had appointed a country manager and intensified its marketing efforts in Ghana.
According to sources familiar with the company’s operations, LemFi intends to engage with Ghanaian regulators, following a similar approach to its Nigeria strategy, where it successfully obtained an International Money Transfer License (IMTO) after engaging with regulatory authorities.