Comments on: The $20 Billion African Remittance Market

By: zulusafari

zulusafari — Wed, 17 Jun 2009 04:13:43 +0000

Haven’t read the comments yet, so hopefully I’m no re-hashing (no pun intended) anyone’s comment.

Call me crazy, but there’s got to be a way for the guys in Africa who are setting up the various forms of mobile banking to go online. If the African Despora in UK, US, etc. could get online and send money into the mobile banking system in Africa, you’ve got one more huge piece of the pie fixed. Not sure exactly how this would work, but the mobile banks could set up partnerships with the US banks or maybe the AMB (African mobile bank) could set up a western union office in major towns in the US to transfer cash/checks into the mobile system in Africa.

Maybe there’s a whole system in place that I’m just ignorant of that has already solved this problem, but I don’t see anyone talking about it. This is the perfect place for a Western investor business man to step in and create an equal relationship with an Africa company. Not for charity, but for profit (nothing wrong with that) for everyone.

A UK friend of mine serving short-term in Sudan lamented the insane rates that Western Union charged in the rural areas of Uganda. Hash, as you described the simple risks and volumes scale of business, my friend, and I fear MANY more, do not understand the basic economic and business principles that drive the cost of doing business, visa-vi, the cost of using a service. Just a little soap box at the end 🙂

PS. Hash: Amazing post! It really shows that you a handle on the issues you write about.

By: Remitter

Remitter — Mon, 26 May 2008 09:32:46 +0000

Remittance market in Africa has been largely ignored by most. This despite the fact that African immigrants are quite large in number. Most immigrants hail from either Asia or South America. The diaspore bonds introduced in Kenya have brought in a new phase of change in the remittance business and other African countries should follow the suit. It is imperative to tap this region becuase the scope is still unexplored.

By: Should Kenyans make more of an effort to go home? - Page 6 - Mashada Forums

Should Kenyans make more of an effort to go home? - Page 6 - Mashada Forums — Thu, 22 May 2008 23:28:15 +0000

[…] Posted by t.D.A. This covers the whole of Africa: The $20 Billion African Remittance Market | White African Thank you!! […]

By: Should Kenyans make more of an effort to go home? - Page 5 - Mashada Forums

Should Kenyans make more of an effort to go home? - Page 5 - Mashada Forums — Thu, 22 May 2008 04:21:37 +0000

[…] knew most Kenyans sent money home, but that much? Impressive. This covers the whole of Africa: The $20 Billion African Remittance Market | White African The Displaced African http://www.thedisplacedafrican.com The feed: […]

By: KENYA ICT EXPO FOR DIGITAL VILLAGES

KENYA ICT EXPO FOR DIGITAL VILLAGES — Sat, 26 Apr 2008 14:42:52 +0000

guys out there (abroad) are sleeping. Why did they go abroad? It is in rare case that they invest back home while they could be the ones taking Africa to the next level. Very few people are doing that. Thanks to those who have contributed to 20 billion. Otherwise, I look forward for the whole africa shopping online. Guys in africa fear loosing money. That is why online shopping is has not yet stuck in their minds. With the few techs cropping up, now there is some light on what can happen online. Digital Villages in Kenya for example could be a big exposure for kenyans to wake up and appreciate doing everything online.

By: HASH

HASH — Mon, 18 Feb 2008 17:41:28 +0000

@Njuguna, I know it doesn't sound like much relative to the rest of the world. However, 400 million people and $20 billion is not small. I think it would be safe to say that many companies would be happy to access and make a small cut of that $50 transaction. Think of the long tail here. You're talking smaller margins, but greater volume.

By: Njuguna

Njuguna — Mon, 18 Feb 2008 01:37:18 +0000

I know 20 billion sounds like a lot of money… but when you realize that there are 400 million people living in sub-saharan africa…. that is only $50 per person per year.

So, really it makes very little of a difference in the overall economy.

By: tracy

tracy — Tue, 12 Feb 2008 04:59:45 +0000

Thanks for the mention Hash!
The thing I find the most frustrating is that the longer rural Africans remain unbanked the longer it will take them to gain the benefits that a banking system has to offer. ATM cards are HUGELY common methods of money transfer, but it is inconvenient since the ATMs are few and far between unless you live in the city. The more people use the banking system the more likely the banks will be to provide actual banks in African communities. Having access to credit is certainly one step on the path out of poverty. Hawala is another option, but might not be as effective when it is not the cultural norm… its informality also leaves it open to suspicion.

By: bankelele

bankelele — Mon, 11 Feb 2008 08:44:11 +0000

It’s expensive because of the lack of competition, and the stifling regulatory environments. It was the same in mexico, till more players started competing with WU and MG in the remittance field, and that could be the same for Africa too. Banks are cheaper, but they lose on (i) can take 2 days for transfer to be effected (ii) many don’t have bank accounts, and it’s mostly confined to urban areas.
– PS contact Segeni for some pointers on the question you posed

By: Mwangi

Mwangi — Sun, 10 Feb 2008 04:25:42 +0000

Thanks for opening my eyes, yet again, to something I never would have seen. In general the way I see money getting transferred is either through bank transfers with people in the rural areas having to travel to the city to find a relative who has a bank account or by sending the money via someone who is travelling abroad meaning the traveller has to take time of their trip to travel to the money’s destination.
Definitely food for thought. Definitely.