Reducing Remittance Prices: Putting Money Back into Africans' Pockets

REDUCING REMITTANCE PRICES PUTTING MONEY BACK INTO AFRICANS' POCKETS It is more expensive to send money to Africa than to any other region in the world, resulting in $4 billion less in the pockets of migrants A migrant who sends $200 to Nigeria would pay $20 in fees... enough to buy 3 kilos of rice. and their families. The global community, including G20/G8 countries, set a target to reduce money transfer fees to 5% globally. Today, the global average fee is 9%, while the average fee to send money to Africa is 12%. In Nigeria, where the most migrants send money home from outside the country, the fee is 10%. Reduce the fee to 5%, and families could buy 12 kilos of rice... Globally, the 5 most costly corridors are all intra-Africa, and rates are as high as 25%. G20/G8 Target Global Average Nigeria Africa Average 19% 110% ..the equivalent of dinner for a family of 4 for a week. 112% Intra-Africa 25% WHAT WILL IT TAKE TO BRING PRICES DOWN? $$$ $$ 3 $$$$$ $$$4 The global community can spread the word about the high cost of remittances and work toward the G8/G20's “5x5" objective to reduce costs to 5%. 2 Individuals can foster competition in the market by shopping around and picking the best service to send their money. Country authorities and market players can enact regulation, deploy efficient infrastructure, and open the market to new providers. JOIN THE CONVERSATION ON TWITTER: #SENDMONEY Cost of sending US $200. Data as at Q4 2012. Transparent providers only. Source: Send Money Africa Funded by the African Institute for Remittances Project http:sendmoneyafrica.worldbank.org THE WORLD BANK EUROPEAN COMMISSION