Time for Action: Accelerating Affordable Remittances in Africa

Synopsis: 

In 2023, Africa received in $100 billion in remittances which equaled nearly 6% of the continent’s GDP, surpassing the funds received through Official Development Assistance (ODA) and FDI. For many households, this is a critical source of income, which could be the difference between going to bed on an empty stomach and having a meal. They have been a resilient stream of external finance, proving to be a stable source of income especially during the COVID-19 pandemic crisis, and thus, instrumental in advancing the continental and global developmental goals through reducing inequalities and stimulating economic growth. 

However, the transfer cost of remittances remains high. According to the World Bank, the average cost of sending $200 to Africa was 8.5% of the amount transferred, but sending to some countries in South Africa, reaches as high as 20%. One of the SDG goals is to reduce the cost of remittances to less than 3% by 2030, but progress is yet to be seen. 

This session covered the following key discussion points:

• What strategies can be adopted to leverage the developmental potential of digital remittances and make them more affordable and accessible? 
• What are the key initiatives the government and other key enablers are considering to drive investments in building robust digital infrastructure? 
• How will the government address the challenges contributing to high transfer costs while fostering an environment conducive to the continuation and growth of digital remittances? 

Speakers: