Why do Africans pay the most to send money home?

From Global development | The Guardian Wed Jan 30 2013, 13:38:18

Migrants moving cash from Tanzania to Kenya pay average fees of 22%, but mobiles could make transfers cheaper and easier

Look on it as an extra income tax. If you earn money here, but want your family back home to spend it, then you can reckon on giving a healthy slice of it to someone for doing very little.

Fees for remitting money vary wildly between providers and countries. African migrants, who sent almost $60bn (£38bn) in remittances last year, pay the most. On average migrants sending money home to Africa lose 12% to fees. Moving money between African countries can cost much more - sending money to Tanzania from neighbouring Kenya or Rwanda, for example, costs an average of 22% (or a $44 cut on $200 transferred).

"It's horrifying," said Michael Clemens, of the Centre for Global Development, a thinktank based in Washington. "Really in a competitive environment there's no reason these things should be more than 2, 3 or 4% ... There's a justice component to it, there's no doubt about it."

[view whole blog post ]
 See More    |     Report Abuse


You might also be interested in the following news stories:

Africa:   The Cities of Accra in Ghana, Kinondoni in Tanzania and Praia in Cape Verde Win the Inaugural José Eduardo dos Santos African Mayor Awards (press release)
African Media Agency
1 May 2015

The winners of the inaugural 2015 "José Eduardo dos Santos African Mayor Awards" have been announced in Luanda, Angola. These awards acknowledge the leadership and contribution made by Mayors ... [read more]

Africa:   Best-run Cities Revealed (news)
CAJ News Agency
1 May 2015

THREE cities, Praia, Kinondoni and Accra have been adjudged the best cities in the area of urban development in Africa. [read more]

Tanzania:   1,800 Burundi Refugees Arrive in Kigoma (news)
Tanzania Daily News
5 May 2015

MORE than 1,852 Burundi nationals had arrived in Kigoma by last Sunday in search of refuge, following political turbulence in their country due to President Pierre Nkurunziza's move to seek a third ... [read more]



blogAfrica is allAfrica.com's platform to help you keep an ear on the African blogosphere. We draw diverse voices from around the world who post regularly and insightfully about African issues. Bloggers, submit your blog's rss-feed!