Remittance flows represent an increasingly important source of income for sub-Saharan Africa (SSA). Remittances act as key sources of financial support for households: they reduce the likelihood of impoverishment, contribute to improved health and education and provide greater resilience to financial shocks. To maximise formal remittance impact in the region, the true cost of sending and receiving the funds needs to drop so as to incentivise higher formal flows. This includes a reduction in the cost for sending remittances as well as improved access for senders and recipients at the first and last mile.
The value of formal remittances sent into the region is stopped growing in 2016. Remittance senders are migrating to informal channels because SSA still has the most expensive corridors in the world, both in terms of sending funds from outside as well as accessing the funds within the region.
Cenfri Technical Director and payments expert, Barry Cooper will present research on the seven-part barriers to remittances series.
This body of research identifies the most prominent corridors within and into SSA in terms of volume, cost and importance for the economy. It also investigates the relationship between remittance flows and migration patterns, which is used as a proxy to identify pain points in specific corridors. This report is aimed at remittance stakeholders, policymakers and anyone who is interested in understanding the remittance market in SSA in more detail.