Speaking in conjunction with chairman and CEO, Pamela H Patsley said that Africa has significant growth potential for the company and countries such as Angola, Ghana, Nigeria, Senegal and Morocco are well positioned to drive this growth. While Africa is a growing remittance market, receiving money mainly from the US, Canada, UK, France and Spain, it also is an important send country.
"The organisation's plan is to leverage our extensive global network of 227 000 locations in 190 countries and territories to become the money transfer provider of choice on the African continent for sending and receiving money," said Patsley. "Equally important to our growth in Africa is our unwavering focus on and strict adherence to complying with all laws, rules and regulations in the countries in which we operate."
The African Diaspora currently consists of more than 30 million individuals living outside their countries of origin. It is estimated that these migrants contribute approximately US$20 billion in remittances to their families and communities at home every year. Particularly during times of financial and political turmoil, workers' remittances are being recognized for their contribution to the economic health of the region's nations, as well as for their vital importance to recipient families.
In 2010, the global remittance business was in excess of $400 billion, an increase of 6% over 2009. By the end of 2010, World Bank estimates indicated Africans abroad sent back a total of $21.5 billion, a 4.4% increase from the previous year. Its experts also forecast that the amount of money African migrants send back to their countries of origin will reach $22 billion in 2011 and $24 billion in 2012.
Africa has become a vibrant growth channel for MoneyGram. Since 2006, the dollar amount of remittances inbound to Africa has increased by more than 100%, with remittances to Ghana, Nigeria and Morocco contributing substantially to this growth; intra-Africa transactions have grown exponentially at nearly 300% during the past four years.
Its core service provides cash-to-cash or person-to-person money transfers in 10 minutes, which is ideally suited to customers without access to formal or traditional banking institutions. However, the company and its agents have added cash-to-card solutions in South Africa, Morocco and Senegal. In countries like Angola and Nigeria, payout options include major currencies such US dollars and euro, allowing customers to save costs associated with currency exchange.
