Remittance Markets in Africa

Sanket Mohapatra And Dilip Ratha

Description

Remittances sent by African migrants have become an important source of external finance for countries in the Sub-Saharan African region. In many African countries, these flows are larger than foreign direct investment and portfolio debt and equity flows. In some cases, they are similar in size to official aid from multilateral and bilateral donors.
Remittance markets in Africa, however, remain less developed than other regions. The share of informal or unrecorded remittances is among the highest for Sub-Saharan African countries. Remittance costs tend to be significantly higher in Africa both for sending remittances from outside the region and for within-Africa (South-South) remittance corridors. At the same time, the remittance landscape in Africa is rapidly changing with the introduction of new remittance technologies, in particular mobile money transfers and branchless banking.
This book presents findings of surveys of remittance service providers conducted in eight Sub-Saharan African countries and in three key destination countries. It looks at issues relating to costs, competition, innovation and regulation, and discusses policy options for leveraging remittances for development in Africa.

Informations

• Publié par: world-bank-publications
• Publié le: 21 avril 2011
• Nombre de lectures: 46
• EAN13: 9780821385531
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

DIRECTIONS IN DEVELOPMENT
Finance
Remittance
Markets in Africa
Sanket Mohapatra and Dilip Ratha
EditorsRemittance Markets in AfricaRemittance Markets
in Africa
Sanket Mohapatra and
Dilip Ratha
Editors© 2011 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: [phone]
Internet: www.worldbank.org
All rights reserved
1 2 3 4 14 13 12 11
This volume is a product of the staff of the International Bank for Reconstruction and
Development / The World Bank. The findings, interpretations, and conclusions expressed in this
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ISBN: 978-0-8213-8475-6
eISBN: 978-0-8213-8553-1
DOI: 10.1596/978-0-8213-8475-6
Library of Congress Cataloging-in-Publication Data
Remittance markets in Africa / Sanket Mohapatra and Dilip Ratha, editors.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8213-8475-6—ISBN 978-0-8213-8553-1 (electronic)
1. Emigrant remittances—Africa, Sub-Saharan. 2. Economic development—Finance—Africa,
Sub-Saharan. 3. Africa, Sub-Saharan—Emigration and immigration—Economic aspects.
4. Africa, Sub-Saharan—Economic conditions. 5. Financial services industry—Africa, Sub-
Saharan. 6. Africans—Economic aspects—Europe, Western. 7. Immigrants—Economic
aspects—Europe, Western. I. Mohapatra, Sanket, 1975- II. Ratha, Dilip.
HG3982.R46 2011
332.450869120967—dc22
2011013215
Cover illustration: Diana Ong/SuperStock/by Getty Images
Cover design: Drew FasickContents
Foreword xv
Acknowledgments xvii
Abbreviations xix
PART I Overview 1
Chapter 1 Migrant Remittances in Africa: An Overview 3
Sanket Mohapatra and Dilip Ratha
Recent Remittance Trends in Africa 6
Macroeconomic Impacts of Remittances 11
Impact on Households 16
Remittance Markets in Africa 26
Policies for Leveraging Remittances
for Development 38
Overview of Remittance Market Surveys
in Africa and Two Remittance-Source Countries 42
Annex 1.1 50
Annex 1.2 51
Notes 54
References 59
vvi Contents
PART II Remittance Markets in Remittance-Receiving
Countries 71
Chapter 2 Burkina Faso 73
Yiriyibin Bambio
Remittance and Migration Trends 74
Characteristics of the Remittance Industry 77
The Regulatory and Business Environment 81
Conclusions and Recommendations 86
Annex 2.1 87
Notes 88
References 88
Chapter 3 Cape Verde 91
Georgiana Pop
Remittance and Emigration Trends 91
Characteristics of the Remittance Industry 96
Access to Other Financial Services 100
The Regulatory and Business Environment 100
Remittance Costs and Identification Requirements 103
Conclusions and Recommendations 106
Annex 3.A Financial Sector Development
in Cape Verde 109
Notes 110
References 110
Chapter 4 Ethiopia 113
Alemayehu Geda and Jacqueline Irving
Recent Migration Trends 114
Remittance Sources and Trends 114
Characteristics of the Remittance Industry 116
The Regulatory and Business Environment 124
Remittance Costs 126
Customer Identification Requirements 127
Conclusions and Policy Implications 127
Annex 4.1 Banks and MTOs Interviewed
for the Study of the Ethiopian
Remittance Services Industry 130Contents vii
Notes 130
References 131
Chapter 5 Ghana 133
Peter Quartey
Remittance and Migration Trends 133
Characteristics of the Remittance Industry 138
The Regulatory and Business Environment 145
Conclusions and Recommendations 149
Notes 151
References 152
Chapter 6 Kenya 155
Rose W. Ngugi
Remittance and Migration Trends 156
Characteristics of the Remittance Industry 158
The Regulatory and Business Environment 172
Conclusions and Recommendations 178
Notes 182
References 182
Chapter 7 Nigeria 185
Chukwuma Agu
Remittance and Emigration Trends 187
Characteristics of the Remittance Industry 190
The Regulatory and Business Environment 199
Conclusions and Recommendations 210
Notes 216
References 217
Chapter 8 Senegal 221
Fatou Cisse
Remittance Trends and Their Economic Significance 222
Characteristics of the Remittance Industry
in Senegal 229
The Regulatory and Business Environment 235
Conclusion 238viii Contents
Notes 239
References 239
Chapter 9 Uganda 243
Rose W. Ngugi and Edward Sennoga
Trends and Uses of Remittances 245
Characteristics of the Remittance Industry 247
Emerging Products: Mobile Money Transfers 256
Transport Service for Domestic Remittances 258
Remittances and Access to Financial Services 259
Regulatory and Business Environment 260
Remittance Costs and Identification
Requirements 262
Conclusion 266
Recommendations 267
Notes 268
References 268
PART III Remittance Markets in Remittance-Source
C oun tries 271
Chapter 10 France 273
Frederic Ponsot
Remittance and Migration Trends 273
Characteristics of the Remittance Industry 278
The Regulatory and Business Environment 295
Conclusions and Recommendations 302
Annex 10.1 308
Acknowledgments 310
Notes 311
References 315
Chapter 11 United Kingdom 317
Leon Isaacs
Migration and Remittance Trends 317
Characteristics of the Remittance Industry 320
The Regulatory and Business Environment 329