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:

Rwanda:   Prosecutor Hassan Jallow Welcomes Rwanda Genocide Verdict (news)
The Daily Observer
1 October 2014

Gambian born prosecutor of the United Nations International Criminal Tribunal for Rwanda (ICTR) has welcomed the judgments of the Court's Appeals Chamber, delivered on Monday, September 29th. [read more]

Rwanda:   Country To Make Its Debut on Big Brother Hotshots (press release)
Big Brother Africa
1 October 2014

M-Net and Endemol SA are pleased to announce that due to recent developments, Rwanda has now been re-instated as a participating country in Big Brother Hotshots. [read more]

Rwanda:   Et si l'homme portait le nom de sa femme ? (news)
Radio Netherlands Worldwide
1 October 2014

Si la loi est promulguée, au Rwanda, un homme pourra porter le nom de son épouse. La chambre basse du Parlement vient de voter une "loi sur les personnes et la famille" qui dispose que ... [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!