Research and Enterprise for Diaspora –UK (RED-UK) a Diaspora-led, non-profitable and UK registered organisation is asking for an investigation into money transfers on remittances to Africa
1.8 billion per year is lost in intermediation when the African Diaspora send money home. Research by ODI (2014) has revealed that the African Diaspora in the UK remits an estimated $5bn per year to their home countries. This is a significant source of inward investment to some of the poorest countries in the world.
However, money transfer companies typically charge 8-9 per cent for the service in addition to the often undisclosed currency exchange costs which can make up a further 3-5%. Charges within Africa are even more expensive.
Mozambicans sending money from South Africa or Ghanaians remitting money from Nigeria could face charges well in access of 20%. One of the key points highlighted by the ODI study is that, on average, African Diasporas pay at least 12% for sending £120.00 home, which is almost double the global average.
This petition aims at generating answers to the crucial question of why the world’s poorest region is coerced to pay the world’s highest money transfer fees. We therefore call upon all African Diasporas across the globe, friends and family members to support RED-UK in advocating for the money transfer system to be formally investigated as there is currently no justification for the exorbitantly higher charges.
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