In an effort to promote financial inclusion using mobile money, WorldRemit, a leading digital money transfer service, has launched a low-cost online money transfer from South Africa to over 145 destinations worldwide, including Nigeria.
Using the WorldRemit website or app, Nigerians in South Africa can now make a low-cost money transfer to major banks in Nigeria.
As contained on a report on remittance prices by World Bank, South Africa is the most expensive G20 country to send money from with an average cost of over 15% for sending $200, a percentage more than double of the global average.
The African Continental Free Trade Agreement (AfCFTA) signed in March 2018 in Kigali, Rwanda, recognized the cost of charges to transfer money within Africa as one of the obstacles for intra-African trade.
Remittances, which account for a substantial part of many African countries GDP are burdensome on both the sender and receiver, as the cost for remittances in the continent are more expensive than other parts of the world. A situation, attributed to low level of financial inclusion and a lack of banking services.
Through the digitization of remittances, WorldRemit aims to bring millions into the financial system where users can access Mobile money platforms especially in countries where trust and penetration in traditional banking methods are low.
Africa is one of WorldRemit top ten remittances receiving region, with over 40 African countries. The launch of money transfers from South Africa to other parts of Africa, including Nigeria, is seen as a milestone for WorldRemit, as the company targets the growing money transfers market within Africa.