World Bank calls on operators to reduce rates on remittances from migrants

Feb 11, 2013

The World Bank has called on policy makers and remittances operators to decrease the rate applied to remittances from migrants by five percent, which is currently at an average of 12.4 percent.

The World Bank has called on policy makers and remittances operators to decrease the rate applied to remittances from migrants by five percent, which is currently at an average of 12.4 percent.

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.

"The high transaction cost is reducing the amount of remittances, which are a source of livelihood for millions of Africans," said Gaiv Tata, head of global practices in the financial inclusion and infrastructure sector at the WB.

According to him, remittances have a "significant effect on poverty" because they help households to cope with immediate needs and to invest in the future.

The document also highlights that South Africa, Tanzania and Ghana practice the highest remittance costs in Africa, with average rates of 20.7 percent, 19.7 percent and 19 percent respectively.ADNFCR-2976-ID-801538348-ADNFCR