Transfers to Africa will decrease by 5.4 % to $ 41 billion-covid-19 pandemic and high shipping costs-emerging countries

Consequently, the continental migration report 2021, which was created by the Economic Commission for Africa (ECA) in cooperation with the Commission of the African Union (AUC), recommends that "to take effects around the world to governments in view of the support of the struggle against Covid-19."

In addition to pandemic, transfers to Africa will continue to be hindered by high transmission costs, the report says. For example, if $ 200 is sent to the continent, the sender incurs average costs that correspond to eight percent of the value sent. According to the report, these average shipping costs are more than five percentage points above the goal 10 of the UN target for sustainable development of three percent.

reduction of the transfer costs

As the report states, however, some African countries have taken steps to reduce the costs of transfers. Some of the measures taken include "loose currency controls to enable electronic and mobile money transfers to reduced costs".

The Continental Migration Report 2021 in turn recommends that Member States support migrants and their families by adopting laws and regulations to facilitate sending and receiving transfers. This could be done by "promoting the competition between banks and other transfer providers with regard to the establishment of cost -effective transfer mechanisms".

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