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Browsing: Impact of mobile money on African remittance costs
- Africa’s remittance market is projected to reach $500 billion by 2035, driven by mobile money technology and strategic investments in financial infrastructure.
- Despite high remittance costs, reducing fees through competition, regulatory improvements, and digital expansion is essential for maximizing economic benefits.
- Addressing informal channels and promoting financial literacy will further enable the continent to harness the full potential of remittances for sustainable growth and development.
Africa’s remittance market is poised for steady growth, with predictions indicating it could reach a staggering $500 billion by 2035. This projection comes from DAI Magister, an investment bank, which highlights the vital role remittances play in the continent’s economy.
The total value of remittances in Africa hit $100 billion in 2022, with $20 billion attributed to intra-Africa flows. As remittances comprise a huge portion of African GDP, understanding and optimizing this financial inflow is crucial for the continent’s economic future.