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

Tuesday, June 19, 2018

Postal services can play a pivotal role in delivering remittances, lowering the transfer costs and providing access to basic financial services in Africa, says a new report.

This is indicated by the report released today by the International Fund for Agricultural Development (IFAD) and the European Commission (EC) on the occasion of the International Day of Family Remittances to be observed tomorrow.

Financial inclusion remains a challenge in Africa. According to recent estimates, only 41 per cent of the population above 15 years of age has an account and access to formal financial services. In this context, postal operators have an important role to play, especially in rural areas. As a result of the joint programme, at least 100,000 adults opened new postal accounts accessing financial services for the first time.

The report, A success story on remittances at the post office in Africa, analyses the results achieved by African Postal Financial Services Initiative (APFSI), a joint programme led by IFAD and financed by the European Union (EU). The programme has been implemented in 11 African countries in cooperation with the World Bank, the United Nations Capital Development Fund, the Universal Postal Union and the World Savings and Retail Banking Institute.

Photo courtesy of AMISOM Public Information.