AfDB wants to lower the cost of international money transfers

Feb 27, 2013

The African Development Bank (AfDB) has called on remittances operators in Africa to cut costs, particularly on international transfers.

The African Development Bank (AfDB) has called on remittances operators in Africa to cut costs, particularly on international transfers.

The institution, which made the appeal on February 22nd during a workshop in Douala, believes that remittances from migrants to their countries of origin represent an important financial influx to developing countries.

"The fees charged by operators on international money transfers are high, whether in Africa or in the country where the funds are raised. This carries the risk for shippers to use other channels (including informal) to make their transfers," said Racine Kane, a representative of the AfDB in Cameroon, quoted by Cameroon Tribune.

The fees sometimes reach 20 percent of the amounts transferred and the French Agency for Development, partner of the AfDB, said during the workshop it hopes to see fees capped at five percent of the amount sent by 2014.

A few days earlier, the World Bank had also called on remittances operators to decrease by five percent the rate applied to remittances from migrants.

According to a World Bank document published by APS news agency, approximately 30 million African migrants have sent a value of $60 billion (€44.9 billion) to 120 million beneficiaries in 2012.

ADNFCR-2976-ID-801547746-ADNFCR