c-money-RTR4PS7W-Omar Faruk

Migrants sending remittances to Africa pay the highest fees in the world

9%

Migrants sending remittances to Africa pay the highest fees, at 9% of every $200, out of five destination regions in the developing world.

Published   |  Photo by Reuters/Omar Faruk
c-money-RTR4PS7W-Omar Faruk
9%

Cost of sending remittances to developing countries (% of $200)

c-money-RTR4PS7W-Omar Faruk
9%

Poor financial infrastructure (in and among remittance companies, banking institutions, and postal services), and lack of competition contribute to the high fees.

c-money-RTR4PS7W-Omar Faruk
9%

Overall, Southern Africa is the costliest region, with 14.6% of $200. And the Caucasus is the cheapest, with 3% of $200, thanks to financial linkages left from the Soviet Union.

c-money-RTR4PS7W-Omar Faruk
9%

Cost of sending remittances to Africa (% of $200)

c-money-RTR4PS7W-Omar Faruk
9%

Remittances represent more than 3% of the GDP of more than 70 countries. For Liberia, Nepal, and Haiti, that share is larger than 25%.

c-money-RTR4PS7W-Omar Faruk
9%

The global flow of remittance money jumped from $300 billion in 2007 to $445 billion in 2016. But a chunk of that is lost on fees that average at 7.5%.

c-money-RTR4PS7W-Omar Faruk
9%

Cost of sending remittances to developing countries

c-money-RTR4PS7W-Omar Faruk
9%

The UN wants costs to go down to 3% of $200 by 2030. With that reduction, migrants would save $20 billion every year.

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