High Remittance Costs Burden Sub-Saharan Africa, Despite Tech Advancements
Remittances to sub-Saharan Africa remain expensive, with the average remittance fee per transaction as of mid-2024 was 8.37%. This high cost disproportionately affects low-income families who rely on funds from foreign relatives. While fintech innovations and mobile currency solutions make transfers more accessible, traditional banking fees and regulatory challenges have increased costs. The World Bank and other institutions continue to advocate for policy reforms to reduce transaction fees to the UN’s target of 3%. Reducing these costs can greatly improve financial inclusion, economic stability and poverty alleviation across the region.
source: CNN
