Serrari Group

Africa’s remittance market is on track to expand significantly in the coming years, driven by a projected growth to $500 billion by 2025, according to analysts at a leading investment bank. In 2022, remittances to the continent neared $100 billion, with intra-African flows contributing $20 billion to this total.

Despite their economic importance, the cost of sending money to Africa remains high, surpassing global averages and reaching up to 20% in parts of Sub-Saharan Africa. This challenge underscores the need for reforms aligned with the UN Sustainable Development Goals, which aim to reduce remittance fees to less than 3% by 2030.

Mobile money has emerged as a transformative force in addressing these high costs, with experts highlighting its potential to enhance interoperability and financial literacy across the continent. Analysts project significant growth based on a compound annual growth rate (CAGR) of 12.1% observed between 2019 and 2022. This growth trajectory suggests that the formal remittance market, valued at $100 billion in 2022, could reach $283 billion by 2035, not including informal channels which currently constitute a substantial portion of total transactions in Africa.

To fully capitalize on these opportunities, stakeholders must collaborate to overcome existing barriers. Key strategies include promoting competition among service providers, improving regulatory frameworks, and investing in robust financial infrastructure. These efforts aim to make remittance services more affordable and accessible, thereby stimulating economic growth and development across the continent.

Digital transformation will play a pivotal role in achieving these objectives. While mobile money adoption has made strides, expanding digital infrastructure and enhancing financial education will be critical in driving broader acceptance of digital remittance services. Such initiatives are essential to ensuring seamless transactions and fostering economic inclusivity.

In conclusion, Africa stands at a pivotal juncture in harnessing the potential of remittances amidst ongoing currency challenges in Sub-Saharan Africa. By addressing barriers and embracing technological innovations, stakeholders can leverage remittances as a catalyst for sustainable economic development across the continent.

Share this article:
Article and News Disclaimer

The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.

www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023

 

×