Breaking News

African Migrants Could Save US$4 Billion Annually On Remittance Fees

by APO
28 January 2013 | 4717 Views

WASHINGTON - Bringing remittance prices down to five percent from the current 12.4 percent average cost would put US$4 billion more in the pockets of Africa's migrants and their families who rely on remittances for survival.

Africa's overseas workers, who sent close to US$60 billion in remittances in 2012, pay more to send money home than any other migrant group. According to the World Bank's Send Money Africa database, Sub-Saharan Africa is the most expensive region to send money to, with average remittance costs reaching 12.4 percent in 2012. The average cost of sending money to Africa is almost 12 percent- higher than global average of 8.96 percent, and almost double the cost of sending money to South Asia, which has the world's lowest prices (6.54 percent).

The G8 and the G20 established 5 percent as the target average remittance price to reach by 2014. "High transaction costs are cutting into remittances, which are a lifeline for millions of Africans," said Gaiv Tata, Director of the World Bank's Africa Region and Financial Inclusion and Infrastructure Global Practice. "Remittances play a critical role in helping households address immediate needs and also invest in the future, so bringing down remittance prices will have a significant impact on poverty." Lower cost remittances also advance financial inclusion, since they are often the first financial service used by recipients, who are then more likely to use other financial services including bank accounts.

Remittance prices are even higher between African nations. South Africa, Tanzania, and Ghana are the most expensive sending countries in Africa, with prices averaging 20.7 percent, 19.7 percent, and 19.0 percent respectively, due to several factors including limited competition in the market for cross-border payments.

"Governments should implement policies to open the remittances market up to competition," said Massimo Cirasino, Manager of the Financial Infrastructure and Remittances Service Line at the World Bank. "Increased competition, as well as better informed consumers, can help bring down remittance prices."




Send Money Africa also finds that banks, which are the most expensive remittance service providers, are often the only channel available to African migrants. A regulatory environment that encourages competition among remittance service providers can help bring down remittance prices. Migrant workers can also benefit from more transparent information on remittance services.

For more information, visit Send Money Africa at sendmoneyafrica.worldbank.org


World Bank

Source: The World Bank

Is Itai Dzamara eyeing the US Green Card?

Yes
20.37%
No
73.83%
Not sure
5.79%
535

Comments

News Updates

Email:

Latest News

'The next Zimbabwe President will not be Zezuru' - ZIMBABWEANS must no...

by Staff reporter | 23 May 2015 | 401 Views

Dembare TV launched - HARARE giants Dynamos today launched Dembare TV,...

by Sports reporter | 23 May 2015 | 411 Views

Highlanders FC bus finally arrives - Picture - Highlanders FC bus fina...

by Staff reporter | 23 May 2015 | 749 Views

PSL results - Chapungu 1 (Tavarwisa 27')Flame Lily 0ZPC Kariba 0FC Pla...

by Sports reporter | 23 May 2015 | 458 Views

Shamu faces Zanu-PF axe - OUSTED Zanu-PF national political commissar,...

by Staff reporter | 23 May 2015 | 675 Views

Mphoko applied to be VP - VICE President Phelekezela Mphoko applied fo...

by Thobekile Zhou | 23 May 2015 | 3274 Views

Stolen goods Alert! - Hp 625 laptop, External hard drive and LCD scree...

by Staff Reporter | 23 May 2015 | 1049 Views

Highway robber shoots 5 along the Beitbridge - Masvingo highway - A HI...

by Thupeyo Muleya | 23 May 2015 | 3528 Views

Kombi driver in exhaust fumes suicide - A COMMUTER omnibus driver from...

by Auxilia Katongomara | 23 May 2015 | 2396 Views

Fresh bid to oust Kombayi as factionalism escalates in MDC-T - MDC-T n...

by staff reporter | 23 May 2015 | 1075 Views

Mujuru and allies are cowards - Rugare Gumbo has of late been making s...

by Tawanda Majoni | 23 May 2015 | 1285 Views

Zanu-PF faces protest vote in by-election - Zanu-PF faces a protest vo...

by Staff reporter | 23 May 2015 | 930 Views

ZAPU at 'eRenkini'

by Thulani Nkala | 23 May 2015 | 2327 Views

Welshman Ncube blames Tsvangirai on poll reforms - MDC president Welsh...

by Staff reporter | 23 May 2015 | 746 Views

EU Parly discuss Dzamara, supports sanctions on Mugabe - The European ...

by Staff reporter | 23 May 2015 | 959 Views

Mugabe apologises - President Robert Mugabe yesterday once again revea...

by Staff reporter | 23 May 2015 | 2320 Views

Mugabe is that infectious old man who continues to haunt British polit...

by Nathaniel Manheru | 23 May 2015 | 785 Views

Late wife haunts hubby - A family man is facing the wrath of his late ...

by Tendai Gukutikwa | 23 May 2015 | 1413 Views

Soldier cohabits with 14-year-old minor - AN outlawed marriage between...

by Tendai Gukutikwa | 23 May 2015 | 823 Views

South African soapie stars expected in Bulawayo - SOUTH Africa's soapi...

by Bongani Ndlovu | 23 May 2015 | 956 Views

Woman severely bashed for confronting hubby - A BULAWAYO woman was all...

by Staff reporter | 23 May 2015 | 922 Views

Women not safe in Zimbabwe cities - MANY organisations are working on ...

by Daisy Jeremani | 23 May 2015 | 758 Views

Police embarks on stop & search operations - POLICE in Bulawayo say t...

by Auxilia Katongomara | 23 May 2015 | 1448 Views

Nigerian youth protest TB Joshua's persecution - Video - A group of Ni...

by Tawia Acheampong | 23 May 2015 | 822 Views

Entertainment

Don Moen to perform at Prophet Magaya's crusade - American gospel mu...

by Staff reporter | 23 May 2015 | 638 Views

Energy Mutodi faces fresh theft charges - Flamboyant businessman and ...

by Staff reporter | 23 May 2015 | 718 Views

All set for Jah Prayzah album launch

by Brendon Nyoni | 22 May 2015 | 1762 Views

Nicki Minaj teams up with Beyoncé In 'Feeling Myself' Video

by Staff Reporter | 19 May 2015 | 4476 Views

Lady Bee - Manyemwe / Vavengi - (UK) - https://www.youtube.com/watch?...

by Staff Reporter | 18 May 2015 | 2905 Views

Gwala, Kapfupi drama comedy ready - THE hilarious Mahlalela drama come...

by Lance Chigodo | 17 May 2015 | 3547 Views
iBlog

Protect Your Greatest Small Business Asset: Time

if your work week is way more than 40 hours, your smartphone is glued to your hand, and your to-do list is multiple pages of overdue tasks—you know how valuable every minute of your time is.your smartphone and tablet make doing business from anyw... Read More
Sergey 05 September 2014 ago

Rules Or Relationship

The dog does not need a lead to go for a walk. its owner can just speak a word and the dog responds. now, we are not comparing ourselves to dogs, we are comparing performance-based christian living to relationship-based christian living. big, big ... Read More
LindaDiokpa 30 December 2014 ago