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:

Mali:   IBK, sept mois après - Le pays dans l'impasse (opinion)
Fasozine
17 April 2014

Par le biais de ce document dont Fasozine a pu avoir copie, le Parti pour la renaissance nationale (Parena) procède à un bilan du pouvoir par Ibrahim Boubacar Keïta, le ... [read more]

Mali:   Assassinat de Ghislaine Dupont - trois juges et beaucoup de questions (news)
Fasozine
17 April 2014

L'association «Les amis de Ghislaine Dupont», selon ce communiqué de presse, prend acte de l'ouverture de l'information judiciaire contre X annoncée le 11 avril dernier suite ... [read more]

Mali:   L'équipe du CICR est libre (press release)
International Committee of the Red Cross
17 April 2014

Les cinq membres de l'équipe du Comité international de la Croix-Rouge (CICR), enlevés le 8 février 2014 pendant une mission dans le nord du Mali, ont été ... [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!