● WorldRemit just partnered with Abay Bank
● The partnership will improve remittance inflow in Ethiopia
● WorldRemit wants to offer better access to funds
WorldRemit, one of the world’s fastest growing international money transfer brands, is poised to boost remittance inflow in Ethiopia through a partnership with Abay Bank. The newly inked deal will also open doors for WorldRemit according to the brand, as Abay Bank has 170 branches across the country.
WorldRemit’s head for East and Central Africa Sharon Kinyanjui said that the country is a key market for the fintech, but apart from the potential additional revenue from Ethiopia, the deal will also “bring a lot of support to the increase of Ethiopia’s remittance”. According to Abay Bank’s Belete Dagnew, the agreement will enhance the bank’s “accessibility and efficiency” as well. WorldRemit is not Abay’s only partner though. Dagnew added during an interview that the institution is also working with other trusted money transfer services.
The hard currency issue
Ethiopia has been dealing with a hard currency shortage based on recent reports. Dagnew says that the company’s deal with Abay will help Ethiopia in solving its hard currency problem. Based on data from the WorldBank, an estimated four million Ethiopians live and work abroad and they send roughly $3 billion home each year. However, this number is low compared to the expected remittance inflow that should go through legitimate channels. According to recent computations, traditional fund transfer processors charge a hefty 10% per transaction, a burden for many Ethiopians who live abroad. Due to the high costs of moving currency from abroad going to Africa, many Ethiopians opt to just send cash to relatives who are bound for home.
When the brand entered the African market in the year 2010, it only charged a 1% fee and the fee has remained the same. WorldRemit’s money transfer services will boost Ethiopia’s hard currency inflow and take care of the problem of cash being introduced to the black market, observers say. “The more we are affordable, more people are likely to move away from the black market”, Sharon Kinyanjui said during an interview.
Known for its affordable and reliable service, WorldRemit has gained popularity in Africa through the years and has continued to provide better, more accessible service to its customers. Find out more about the remittance service here.
