Mobile Money to Power Global Remittances
Friday, April 17, 2015
Global remittances will grow slowly in 2015, but accelerate again in 2016/17: global remittances are projected to reach $586 billion in 2015, at a slower growth rate of 0.4% due to economic conditions. However, remittances are expected to accelerate again to reach an estimated $636 billion in 2017.
· Remittances to Sub-Saharan Africa are projected to reach $33 billion in 2015: growth in the region is expected to be at 0.9% in 2015. Stagnation in remittances to Nigeria was offset by strong growth in Kenya (10.7%), South Africa (7.1%), and Uganda (6.8%). Nigeria, which received $21 billion in 2014, accounts for two-thirds of remittances to the region.
· Fees remain far too high: the average cost of sending $200 to Sub-Saharan Africa remains at 12% (far off the G20’s target of 5%); largely due to the cost of bricks-and-mortar agent networks of traditional firms. There is a huge potential for mobile technology to reduce costs on both the send and receive sides.
Reading these findings in conjunction with a recent report by the GSMA (2014 State of the Industry Report on Mobile Financial Services), Mobile Money will grow to play a huge role in remittances and help to bring down fees: