Remittance Costs Triple UN Target in Africa, IMF Pushes Digital Fix

Remittance

Families across Sub-Saharan Africa lose billions to steep remittance fees, with costs averaging 8.5% per transfer nearly triple the UN’s 3% target.

The International Monetary Fund’s Deputy Managing Director Bo Li calls this “unacceptable,” citing opaque pricing and slow processing times that slash critical funds for households relying on diaspora support.

Why does sending money home cost so much? Li blames fragmented systems and outdated infrastructure. His solution hinges on digital innovation: “Strengthening domestic payment networks and adopting blockchain could cut delays and fees dramatically.”

The IMF is already piloting tech upgrades in multiple African nations, aiming for tangible improvements within two years.

For migrant workers like those from Ghana, the stakes are high. “Every extra percentage point stolen by fees means less food or school fees back home,” Li emphasized. If successful, the reforms could redirect millions into local economies while advancing UN development goals.

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