Africa is ‘the most expensive country to send money’
According to the World Bank last year Africa was the most expensive country to send money. The World Bank said South Africa remains the costliest, in its analysis of trends in remittance service costs.
In its recent report for the first quarter of 2018, the World Bank put forward that remitting from South Africa gained an average cost of 17.13%.
It costs an average of 9% to send $200 (£143) to sub-Saharan Africa as of the start of 2018, while the global average cost is 7%. Both fall short of the UN’s sustainable development goal of 3%.
“While remittances are growing, countries, institutions, and development agencies must continue to chip away at high costs of remitting so that families receive more of the money,” says World Bank report author Dilip Ratha.
The World Bank says $466bn was sent worldwide in 2017.
That’s a rise of 8.5% since 2016.
The report states that this was driven by economic growth in Europe, Russia and the US.
This year the body expects growth of at least 4%.
Nigeria and Egypt – are two of Africa’s most populated nations with large diasporas –and hence they are among the world’s top remittance recipients, totaling $22bn and $20bn respectively last year