Africans pay to help one another

Africans in the Diaspora sent home $33 billion in 2014 to their relatives or friends to help pay for living expenses, education, health care and even to start a business. Nigerians living overseas sent home $21 billion in 2014, according to the World Bank

The money sent to home countries from diasporans living abroad, also called remittances, are often the financial lifeline sustaining many African families, benefitting some 120 million people across Africa. The remittances are making a significant impact on household spending and improved livelihoods of whole communities. Due to remittances to families, living expenses and emergencies are paid for making life easier in very difficult economic circumstances. A recent World Bank study revealed that remittances are also boosting the usage of new technologies such as mobile phones in African households. In fact, Africa is the fastest growing region for mobile markets.

African diasporans pay more to send money to their home countries compared to Diaspora groups in other regions of the world. In some cases, African diasporans pay twice the global average, according to the World Bank. South Africa, Tanzania, and Ghana are the most expensive sending countries in Africa, with fees averaging 20.7 percent, 19.7 percent, and 19.0 percent. Western Union and MoneyGram are the top money transfer companies in Africa. A diasporan sending money to Africa will frequently incur what economists call a "super tax", where the sender pays exorbitantly high fees, sometimes up 50 percent more than the global average, reducing the actual amount of funds transferred. Diasporans have expressed a need for a simple, immediate and direct money transfer system to pay for family members’ expenses.

Diasporans’ money to family members outpaces international assistance from donor countries, and is the largest international flow of financial resources to Africa.

Source from http://socialistbanner.blogspot.com/