Monday, June 23, 2025
News Upfront
  • Home
  • News
  • Sports
  • Environment
  • Health
  • Economy
  • Opinion
No Result
View All Result
News Upfront
Home AMA

Africa’s digital dividend: The role of technology in remittances

Louvier Kindo Tombe by Louvier Kindo Tombe
May 23, 2023
in AMA
0
Africa’s digital dividend: The role of technology in remittances
0
SHARES
33
VIEWS
Share on FacebookShare on Twitter

by Darryl Pietersen, Director of Anglophone Africa, WorldRemit 

ACCRA, Ghana, 23 May, 2023,-/African Media Agency (AMA)/- The growth of Africa’s digital economy has resulted in many positive changes. In addition to the impact already felt by the changing way in how our world works, the World Economic Forum estimates that the digital economy could contribute nearly US $180 billion to the region’s growth by 2025.1

According to the World Bank, the digitalisation of financial services and money is helping bridge gaps in access to financial services for households and firms, promoting economic development – ultimately reshaping how we receive and send money.2

And although in Africa cash reigns supreme, an influx of new investment and regulatory shifts continue to see e-payments gaining momentum.3

As Africa Day approaches on May 25th, the theme this year shines a spotlight on Science, Technology and Innovation (STI) as catalysts for progress. The STI in Africa Day held earlier this month saw delegates from African countries, UN agencies, industry, and civil society convening to discuss the potential of harnessing science and technology for Africa’s development. As well as enhancing a technical and entrepreneurial culture and building strategic and sustainable partnerships.

On the continent, Ghana remains a leader in remittance inflows, with RemitSCOPE Africa reporting that international remittances account for over 5% of the country’s economy, with an estimated 600,000 families relying on them.4 Last year it was again the second largest recipient of remittances in Sub-Saharan Africa, recording USD $4.7 billion in inflows.5

There is a multitude of reasons for the country being one of the leaders in the remittance space, including a regulatory environment that is cleared and defined, and coordination between stakeholders to identify opportunities for upscaling and mainstreaming.6

However, while some Ghanaian banks offer transactional accounts, banking services and onboarding processes catering to the diaspora, the offering remains limited. Fintechs are tackling this challenge and have started to explore providing financial services linked to remittances through digital platforms and partnerships with financial service providers.7

And while researchers say that there are still gaps in the Ghanaian remittance market such as costs and more client-centric research needed to identify market opportunities to develop inclusive services bundled with remittances, there are some tech developments in the country that should be highlighted as we celebrate Africa Day.8 

Adoption of National Payments Plan  

The Bank of Ghana adopted its National Payments Strategic Plan in 2019. The five-year plan ends in 2024. It is aimed at leveraging opportunities provided by digital technologies to promote competition, efficiency, innovation, and financial inclusion within the payment ecosystem.9

Launch of a Regulatory and Innovation Sandbox

In August 2022, the Bank of Ghana launched its Regulatory and Innovation Sandbox as part of its commitment to continuously evolve a conducive regulatory environment that fosters innovation, financial inclusion, and financial stability. A regulatory sandbox is a supportive and controlled policy environment that enables financial service providers to test innovative products, services, and business models in a live environment under the provision of a regulator.10

Reduction on e-levy transfer values

In November 2022, Ghana’s Ministry of Finance reduced the e-levy on transfer values from 1.5% which it adopted in May to 1%. This move was meant to help the government mobilise domestic revenue.11

Rise of mobile money 

Last month, GSMA launched an industry report on mobile money revealing an upswing in the use of mobile money accounts across the globe. In Ghana, 92% of men and 86% of women currently own a mobile phone. Additionally, 88% of men have a mobile money account, compared to 79% of women. In the last 90 days, 86% of men used mobile money compared to 76% of women.12

The journey towards the digital economy continues. While Africa has in some instances been slow on the uptake of technology, all evidence points to a dramatic shift in this landscape, which is impacting remittances. As technology and innovation grow, WorldRemit will continue to harness these changes to ensure we deliver leading global payment services.  

Distributed by African Media Agency (AMA) on behalf of WorldRemit.

Notes to Editors:

Sources

  1. WeForum. Tech- startups key to Africa’s digital transformation but urgently need investment. 2022
  2. The World Bank Brief Summary for Policymakers. 2018
  3. Mckinsey. The future of payments in Africa. 2022
  4. Remitscope. Ghana Diagnostic. 2022
  5. The World Bank. Remittances Brave Global Headwinds. 2022
  6. Remitscope. Ghana Diagnostic. 2022
  7. Remitscope. Ghana Diagnostic. 2022
  8. Remitscope. Ghana Diagnostic. 2022
  9. Bank of Ghana. National Payment Strategic Plan. 2019
  10. Bank of Ghana. FAQs on BOG Regulatory Sandbox. 2023
  11. GSMA. The State of The Industry Report on Mobile Money. 2023
  12. GSMA. The State of The Industry Report on Mobile Money. 2023

About WorldRemit

We’re a leading global payments company and, along with Sendwave, part of Zepz, a group powering two global payments brands.

We disrupted an industry previously dominated by offline legacy players by taking international money transfers online – making them safer, faster and lower-cost. We currently send from 50 countries to recipients in 130 countries, operate in more than 5,000 money transfer corridors worldwide and employ over 1,200 people globally.

On the sending side WorldRemit is 100% digital (cashless), increasing convenience and enhancing security. For those receiving money, the company offers a wide range of options including bank deposit, cash collection, mobile airtime top-up and mobile money.

Backed by Accel, TCV and Leapfrog – WorldRemit’s headquarters are in London, United Kingdom with regional offices around the globe.

www.worldremit.com

Media Contact

WorldRemit Press Office

media@worldremit.com

The post Africa’s digital dividend: The role of technology in remittances appeared first on African Media Agency.

Previous Post

IFPMA and Speak Up Africa launch 2nd edition of flagship award program supporting young health innovators across Africa 

Next Post

Armes, carburant et or, les trafics prolifèrent au Sahel

Related Posts

Business AI, cloud star at SAP Innovation Day in Kenya
AMA

Business AI, cloud star at SAP Innovation Day in Kenya

June 20, 2025
Des leaders africains du sport à l’honneur lors du lancement de Champs for Change et du livre We Will Lead Africa à Johannesburg
AMA

Des leaders africains du sport à l’honneur lors du lancement de Champs for Change et du livre We Will Lead Africa à Johannesburg

June 20, 2025
African Sports Leaders Celebrated at Champs for Change and We Will Lead Africa Book Launch in Johannesburg
AMA

African Sports Leaders Celebrated at Champs for Change and We Will Lead Africa Book Launch in Johannesburg

June 20, 2025
ATIDI tiendra son Assemblée générale annuelle en Angola, célébrant 25 ans d’impact en tant qu’assureur multilatéral africain
AMA

ATIDI tiendra son Assemblée générale annuelle en Angola, célébrant 25 ans d’impact en tant qu’assureur multilatéral africain

June 18, 2025
Angola to Host ATIDI’s 25th Annual General Meeting as Africa’s Multilateral Insurer Marks 25 years of Impact
AMA

Angola to Host ATIDI’s 25th Annual General Meeting as Africa’s Multilateral Insurer Marks 25 years of Impact

June 18, 2025
L’objectif d’éliminer le paludisme d’ici 2030 est en péril
AMA

L’objectif d’éliminer le paludisme d’ici 2030 est en péril

June 16, 2025
Next Post
Armes, carburant et or, les trafics prolifèrent au Sahel

Armes, carburant et or, les trafics prolifèrent au Sahel

BROWSE BY CATEGORIES

  • AMA
  • Business
  • ECONOMY
  • ENVIRONMENT
  • HEALTH
  • News
  • OPINION
  • Sports
  • Travel

BROWSE BY TOPICS

actualité Africa Alamine Ousmane Mey Anglophone Cameroon anglophone crisis Atanga Nji AWIM back to school Blondel Silenou CAMASEJ Cameroon Cameroon news Cameroun Camtel climate change Corona Virus Covid-19 DefyHateNow digital transformation Dion Ngute Elecam elections Fecafoot Gabon GDA Hon Agho Oliver Huawei ICT University IDPs Judith Yah Sunday Judith Yah Sunday Epse Achidi Minepat News Nigeria Pa Tom Paul Biya Paul Tasong PM Dion Ngute President Paul Biya prof Victor Mbarika UN UNDP UNICEF WPFD YIBS

Recent News

  • Business AI, cloud star at SAP Innovation Day in Kenya
  • Des leaders africains du sport à l’honneur lors du lancement de Champs for Change et du livre We Will Lead Africa à Johannesburg
  • African Sports Leaders Celebrated at Champs for Change and We Will Lead Africa Book Launch in Johannesburg

Category

  • AMA
  • Business
  • ECONOMY
  • ENVIRONMENT
  • HEALTH
  • News
  • OPINION
  • Sports
  • Travel
  • Cart
  • Checkout
  • Contact
  • Environment
  • Farmpower encourages aspiring farmers on modern farming techniques for commercial benefits
  • Log In
  • Member Directory
  • My Account
  • My account
  • My Profile
  • News Upfront – We Break Beyond the Breaking News
  • PAP party gives self a pass mark for the past one year
  • Reset Password
  • Shop
  • Sign Up

© 2020 News Upfront - Website Designed by SoftestWeb Inc.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
  • Sports
  • Environment
  • Health
  • Economy
  • Opinion

© 2020 News Upfront - Website Designed by SoftestWeb Inc.