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Migrants

How can we cut the high costs of remittances to Africa?

Massimo Cirasino's picture

Read it in French, Spanish or Mandarin.

Migrant workers, earning money in jobs far from home, sent more than $400 billion to their families back home in 2012. Such remittances remain a vital source of income for millions of people in developing countries: Food, housing, education, health care and more are paid for every day by workers who earn money abroad. Through a simple and repetitive transaction – sending money home – those workers are really sending heart-warming feelings like hope for a better future and love of family.

5x5 = US$16 billion in the pockets of migrants sending money home

Marco Nicoli's picture

Should you ever need a haircut in South London, you would have the option to choose from a wide array of African hair stylists. There you can get your hair colored, cut, or braided, while chatting up the latest gossip in town, and... you can send money back to Nigeria.

Many stores in South London allow you to send money abroad. It looks just like a fruit market, where the sellers have to compete among each other. Aside from trying to lure customers in with the best looking apples and pears, they also keep their prices exposed.

But the world is not... ("...enough" you are thinking, if you are a James Bond fan) ...the world is not South London and remittance services are not crispy apples nor they are juicy pears. The price for sending money might include a fee, taxes, a margin on the exchange rate applied, and a commission to the receiver. And each service is different in terms of speed and extensiveness of the network where money can be picked up by the receiver. In other words, it is not as easy to compare as the price of apples.