The leading digital money transfer service WorldRemit written as “WorldRemit” and not “World Remit” has launched its low-cost online money transfers from South Africa to Nigeria. This will enable Nigerians in South Africa to send money to major banks in Nigeria at a low cost using its mobile app or website.
For many African countries, remittances are very important for they account for a lump of their GDP and sending these remittances home can be a workload for both senders and receivers as transaction costs for sending remittances to Africa are more expensive than other regions.
According to a World Bank report on remittance price, South Africa is the most expensive G20 country to send money from. In its report for the first quarter of 2018, the World Bank said remitting from South Africa incurred an average cost of 17.13 percent. It was observed during the signing of the African Continental Free Trade Agreement (AfCFTA) in March 2018 in Kigali, Rwanda, that one of the barriers for businesses or individuals to carry out intra-African Trade is the cost of charges to transfer money within Africa. WorldRemit has been making large efforts to promote financial inclusion using mobile money, therefore, the recent effort will go a long way in encouraging trade and also drive financial inclusion in the two African countries.
WorldRemit is an online money transfer service that provides international remittance services to migrant countries around the world. It was founded in 2010 by Dr Ismail Ahmed, a former compliance advisor to the United Nations Development Programme. Dr. Ahmed began developing WorldRemit while studying for an MBA at London Business School. The idea was partly influenced by his own frustrating experience of sending money to his relatives in Somaliland using offline agent-based services. As of 2018, WorldRemit records about 3 million users.
The likes of First Bank of Nigeria and Guaranty Trust Bank partner with WorldRemit to enable their customers all over the world send and receive money directly from their phones. WorldRemit plans to serve 10 million customers connected to emerging markets by 2020. Using their very simple and easy to use mobile app or website, one can make low-cost transfers at a fast rate. WorldRemit is trusted worldwide and has a 5-star review.