Zimbabwe stands ready to gain major benefits from money sent home by workers living abroad. African nations are expected to receive $ 100 billion from these transfers by 2025. The African Development Bank released this prediction at their recent meetings in Côte d'Ivoire. Bank officials expect these money flows to grow fast over the next decade. The total could reach $ 283 billion by 2035.
Many people send money through unofficial networks because official services cost too much. Africa experiences more unofficial transfers than other regions worldwide. Between 35 percent and 75 percent of all money moves through these hidden channels. Official transfer companies charge about 7 percent of each transaction right at the moment. The United Nations aims to reduce these fees to just 3 percent by 2030.
Lower costs would bring more transfers into the official system. Governments could track these flows more effectively and utilize them to support their economies' growth. The African Development Bank says remittances can become powerful tools for development across the continent. Countries like Zimbabwe need these dollars to build stronger financial systems and create more jobs for their citizens.
Many people send money through unofficial networks because official services cost too much. Africa experiences more unofficial transfers than other regions worldwide. Between 35 percent and 75 percent of all money moves through these hidden channels. Official transfer companies charge about 7 percent of each transaction right at the moment. The United Nations aims to reduce these fees to just 3 percent by 2030.
Lower costs would bring more transfers into the official system. Governments could track these flows more effectively and utilize them to support their economies' growth. The African Development Bank says remittances can become powerful tools for development across the continent. Countries like Zimbabwe need these dollars to build stronger financial systems and create more jobs for their citizens.
