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Africa is Paying a Huge Price for Money Transfer Fees

Africa is paying a HUGE price for money transfer fees www.odi.org/remittances-africa MTO Africans abroad pay more fees to send money home than anyone else Their money transfers help pay for food, health, education and agricultural investment in the world's poorest region - fees are making it harder Souroe: Sanket Mohapatra and Dilip Ratha (2011:20) "Remittanoes Markets in Afrioa', World Bank, Washington Africa is paying a HUGE price for money transfer fees MONEY TRANSFER FEES www.odi.org/remittances-africa 12% 7.8% Sending $200 to Sub-Saharan Africa costs, on average, $25 in fees 5% %24 The 12% fee is more than DOUBLE the 5% target set by the global community for 2014 G8 AND G20 STANDARD GLOBAL AVERAGE (EXCLUDING SUB-SAHARAN SUB-SAHARAN AFRICA AVERAGE AFRICA) Africa is paying a HUGE price for money transfer fees www.odi.org/remittances-africa In 2013 this 'super tax' cost the sub-Saharan region $1.8bn $1.8 bn excess fees A transfer from Ghana to Nigeria can cost up to 39% in fees Africa is paying a HUGE price for money transfer fees www.odi.org/remittances-africa The $1.8bn lost to excess money tranfer fees is enough to fund primary education for 14 MILLION African children 14 m.. children could go to primary school Africa is paying a HUGE price for money transfer fees www.odi.org/remittances-africa 2/3 Western Union & Moneygram MTO of the market is controlled by Why are these fees so high? MTO MONEY TRANSFER Lack of competition means the two big players are left unchal- lenged and able to set their own prices MTO ORGANISATIONS other Note: Market share estimate is based on share of remittance pay-out locations. Source: IFAD Sending Money Home to Africa, 2009 Africa is paying a HUGE price for money transfer fees www.odi.org/remittances-africa MTO What can be done? ODI research suggests a more competitive market and greater transparency about how fees are set would help

Africa is Paying a Huge Price for Money Transfer Fees

shared by odi-development on Apr 15
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The world’s poorest region is burdened with the world’s highest money transfer fees. That’s the finding of a new report on remittances from ODI.

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Overseas Development Institute (ODI)

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odi-development

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Politics
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