NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, March 30, 2005

African states could work closely with the private sector to modernise their weak financial service infrastructure, especially banking sector technology. This is crucial not only to improving access to formal banking channels in sending and receiving countries, but also to bringing a significant portion of remittance receipts into the financial system. State actions against money laundering and against funds suspected of financing terrorism have had a marked effect on remittances funnelled through informal channels. And a sizeable number of workers have increasingly resorted to official banking networks to remit funds. Investing and exploiting these financial resources judiciously could yield immense welfare benefits for African nations.
Stroy found here.