News & Current Affairs
High Remittance Costs Burden Sub-Saharan Africa, Despite Tech Advancements
Sending money to sub-Saharan Africa remains expensive, with an average remittance fee of 8.37% per transaction as of mid-2024. This high cost disproportionately affects low-income families reliant on funds from relatives abroad. While fintech innovations and mobile money solutions have made transfers more accessible, traditional banking fees and regulatory challenges keep costs elevated. The World Bank and other institutions continue advocating for policy reforms to lower transaction fees to the UN’s target of 3%. Reducing these costs could significantly improve financial inclusion, economic stability, and poverty alleviation across the region.
Source: CNN
