Cost of sending money to Africa most expensive in the world – World Bank
Africa is the most expensive region of the world in terms of cost of sending money to the continent, says the World Bank citing its Remittance Prices Worldwide Database (RPWD).
According to the Bank, the average cost of sending money to Africa is over 12% of the amount sent, compared to a global average cost of 9%
“…Africa is the most expensive region of the world to send money to. The average cost of sending money to Africa is over 12% of the amount sent, compared to a global average cost of 9%,” said World Bank in a statement November 16, 2011 when it together with the African Union (AU) launched an online database that will help increase transparency about prices and stimulate greater competition among service providers for remittances.
The online database is also known as Send Money Africa. Through its interface, migrants can compare the cost that remittance service providers charge to send a particular amount to a given country.
The World Bank estimates that about 120 million people in Africa receive money from about 30 million relatives and friends who left their home country, for a total of $40 billion each year.
But research, according to the World Bank, has shown that if the cost of sending money could be reduced by 5 percentage points relative to the total amount sent, remittance recipients in developing countries would receive over $16 billion more each year than they do now.
In Africa, where remittances represent the second largest source of foreign inflows after foreign direct investment, this added income could provide recipients and their communities with more opportunities for consumption, savings, and investment in local economies, the Bank added.
By Ekow Quandzie