WorldRemit, a digital money transfer service, has introduced
“low-cost online money transfers” from South Africa to Nigeria.
In a statement on Tuesday, the company said Nigerians
living in South Africa can now send money to all major Nigerian banks with a
few taps directly from their phones, using the WorldRemit app or website.
“The new digital service will reduce the cost of sending
money across borders. The prohibitive charges that individuals and businesses
pay to transfer money within Africa are recognised as a major obstacle to the
growing regional integration promoted by the continent-wide free-trade
agreement signed in March 2018,” the statement read.
“According to the World Bank, South Africa is the
most expensive G20 country to send money from. The average cost of sending $200
from South Africa to Nigeria is nearly 16% – more than double the
global average.
“WorldRemit is now one of the only digital money transfer
services sending money from South Africa. By opening up this service,
WorldRemit will introduce some of the cheapest fees available on the market to
send money to Nigeria – often under half of the average cost.”
Nigeria and South Africa are the continent’s two largest
economies which are home to 20% of Africa’s population.
Both nations contribute $700 billion to the continent’s gross
domestic product (GDP) which represents one-third of the total GDP of $2.1
trillion.
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