Lemfi, the remittance startup that raised $33 million in a Series A round in August, has suspended its operations in Ghana one week after the country’s Central Bank said it was operating without regulatory approval. 

“LemFi users will be unable to send money to banks and mobile money in Ghana,” said LemfFi in a notice to its customers. Lemfi is one of eight remittance companies operating without regulatory approval, Ghana’s Central bank said, warning the public against using the named providers. 

Ghana’s Foreign Exchange Act allows the regulator to fine companies operating without approval and even prescribes the possibility of imprisonment.  

While it is unclear when Lemfi launched in Ghana, it named Efia Odo, an actress and influencer, as brand ambassador in January 2023. The company also hired a country manager and ramped up its marketing in Ghana. 

One source with knowledge of the company’s business said the company will engage Ghanaian regulators, much like it did in Nigeria before it received an International Money Transfer Licence(IMTO). 

The Central Bank warned the public, commercial banks, dedicated electronic money issuers (DEMI), and enhanced payments service providers (EPSP) about dealing with the listed companies. 

Other suspended companies by the Ghana Apex bank have 

We regret to inform you that we are suspending all services to Ghana. As a result, you will be unable to send money to banks and mobile money in Ghana.

For many African countries,  remittances are an important source of foreign exchange. According to World Bank data, remittance inflows to Sub-Saharan Africa, grew an estimated 5.2% to $53 billion in 2022, compared with 16.4% in the previous year.