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:   Kenya to Host AU Summit On Terrorism (news)
Capital FM
1 September 2014

Kenya will host the Africa Union Peace and Security Council Summit on Terrorism, to be attended by a number of Heads of State and Government from the continent on Tuesday. [read more]

Tanzania:   Campaigning for a Child Marriage-Free Tanzania (news)
Deutsche Welle
1 September 2014

A new drive to end child marriage is underway in Tanzania. In a country where almost two out of five girls will be married before their 18th birthday, the "Child Marriage-Free Zone" campaign faces an ... [read more]

Tanzania:   Region's Leaders Enact Joint Anti-Terror Strategy (news)
Tanzania Daily News
2 September 2014

FIFTEEN head of African states are on Monday meeting here to contemplate how they could jointly team up in combating terrorism and all other acts that threaten peace and security in the region. [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!