Online money transfer 'enables remittances to Africa'

Jan 14, 2010

The development of online money transfers might allow Africans living and working abroad to provide remittances to countries such as Ghana, Kenya and Ethiopia.

Aida Diarra, Western Union's Vice-President for the Ecowas region, suggested that the emergence of remittance flows could be beneficial for many African nations.

He is quoted by allAfrica as saying: "Online money transfer is growing very rapidly."

Mr Diarra added: "The development of mobile money transfers is something we are paying great attention to."

The publication notes a recent International Fund for Agricultural Development report entitled Sending Money Home to Africa, which observed that recipients of remittances are more likely to enjoy access to savings accounts and a better standard of education.

Some of the remittances could also help finance projects related to agriculture, ICT and environmental services.

According to the World Bank, the state of infrastructure – such as ICT facilities – reduces national economic growth by two per cent each year in sub-Saharan Africa.