Africa’s overseas workers, who sent close to 60 billion US dollars in remittances in 2012, paid more to send money home than any other migrant group.
The World Bank’s Send Money Africa database says Sub-Saharan Africa is the most expensive region to send money to, with average remittance costs reaching 12.4 percent in 2012.The average cost of sending money to Africa is almost 12 percent – higher than global average of 8.96 percent.
The G8 and the G20 established five percent as the target average remittance price to reach by 2014.
Director of the World Bank’s Africa Region and Financial Inclusion Gaiv Tata said high transaction costs are cutting into remittances, which are a lifeline for millions of Africans.
He added that remittances play a critical role in helping households address immediate needs and also invest in the future.