Belgian start-up aims to end high fees on money transfers

Apr 29, 2014

Remittances towards Africa are far too expensive, which means that the continent cannot fully take advantage of these money transfers.

Remittances towards Africa are far too expensive, which means that the continent cannot fully take advantage of these money transfers.

A number of
European companies are attempting to solve this problem which, according to the World Bank, costs up to four billions dollars a year. As a matter of fact, this is the amount that could be claimed back if the fee on money transfers was lowered by five per cent.

Alain Maniraguha, a Belgian entrepreneur, has announced the launch of a remittance company focusing
on transfers between Europe and Rwanda.

Rwanda however is far from being the first country in terms of receiving money transfers. Nigeria and Egypt rank at the
top, each receiving more than 20 billion a year in remittances.

Since
Rwanda
called upon its migrants to support a solidarity fund, it has received an increase in remittances. Thirty-one million dollars were pledged in 2012.

By launching companies aimed at transferring money towards Africa, entrepreneurs are challenging the monopoly,
Western Union and MoneyGram have been benefiting from.

Each year, African migrants send an estimated 40 billion Euros to their families back on the continent. Fees on these sums can reach up to 12 per cent, double what is charged in the rest of the world.ADNFCR-2976-ID-801716180-ADNFCR