FXCWorldRemit to face problems with intra-Africa money transfers

|

Daniel Webber
Daniel Webber
Founder & CEO
Daniel is Founder and CEO and has 20 years of experience in the international finance world focusing on cross-border payments, technology and the property sectors. Daniel is widely quoted as an expert… Read more

·       One of the biggest problems according to the region’s experts is lack of electricity

·       The power issue has dampened growth in the past few years

·       Investors encouraged to solve the power generation problem

International economic affairs expert Gerrishon Ikiara told reporters on Thursday that WorldRemit will likely face challenges in providing its intra-Africa money transfer service. The University of Nairobi lecturer notes that some African nations do not have the necessary connections for intra-Africa transfers to work seamlessly. During an interview, Ikiara said: “Obviously, the main challenge is the level of infrastructure, because a country without the good infrastructure in terms of electricity and telecommunication infrastructure will make it a bit difficult.” Cross-border payments company WorldRemit recently rolled out its new service in East Africa, according to reports and it has caused quite a buzz in the region.

Infrastructure problem

As Africa started receiving billions of dollars in remittances per year, the region as a whole has been working towards a cashless economy. According to the UN, this has gained momentum through the years noting that Africa has a “phenomenal potential” for inter-African trade.

However, experts are not as enthusiastic since the chatter about the continent’s economic lift-off are mostly about the widespread use of mobile phones. Experts the likes of Quartz Africa’s Omar Mohammed say this is not enough as reliable power is needed to fuel a true economic transformation. To fintech observers, the power generation problem will affect cross-border payment services in terms of overhead costs.

In fact, the unreliability of electric companies in Africa has raised business costs for African entrepreneurs. While there are now millions who have access to electricity, an estimated 600 million Africans are still in the dark, according to data from the World Bank. Entrepreneurs have to pay thousands of dollars per month for electricity access because they often need generators to power their businesses.

For more information about cross-border payments and remittance services, take a look at this link.


Most Read

Use Our Currency Comparison Tool

Results are ranked in order of the best overall deal, taking into account transfer times, rates, fees, and customer service.

Editor's Choice

FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended.  FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.