Remittances: African diaspora hit by high fees
Africans abroad face the highest transactions fees in the world.Africans living abroad pay on average 9.5 percent of the total transfer sum in fees - the highest transactions costs in the world, according to a new World Bank report.
It said that these costs place a heavy burden on Africans and limit productive investment by the diaspora into their home countries.
To address this issue, the Africa Institute for Remittances, International Monetary Fund (IMF), World Bank and leading African diaspora organisations have created the Nairobi Action Plan on Remittances, the African business review reports.
The partnership aims to reduce remittance costs to Africa to less than three per cent by 2020.
Transfers from African migrants to their country of origin increased by 3.4 per cent in 2015 to reach $35.2 billion (€31.2 billion).
However, remittances from African migrants represented only six per cent of total global remittances, whose overall volume is estimated at $581.6 billion.
In Africa, the biggest beneficiaries of remittances are Nigeria and Egypt, followed by Morocco, Tunisia, Algeria, Senegal, Kenya, South Africa, Uganda and Mali.