Research and Enterprise for Diaspora – UK (RED-UK) a Diaspora-led, non-profitable and UK registered organisation is asking for an investigation into money transfers on remittances to Africa.
This campaign is led by the RED -UK and RED-SA teams. Chipo Foweraker the Founder of the Diaspora organisations and CEO of RED – UK and holder of a Master of Public Health (MPH) reiterates the findings of the research by Watkins. K and Quatrtri M (2014) that:
“As much as 1.8 billion per year is lost in intermediation when the African Diaspora send money home. Research by ODI (2014) has revealed that the African Diaspora in the UK remits an estimated $5bn per year to their home countries.
This is a significant source of inward investment to some of the poorest countries in the world”.
Chipo Foweraker
However, money transfer companies typically charge 8-9 per cent for the service in addition to the often undisclosed currency exchange costs which can make up a further 3-5%. Charges within Africa are even more expensive.
Mozambicans sending money from South Africa or Ghanaians remitting money from Nigeria could face charges well in access of 20%. One of the key points highlighted by the ODI study is that, on average, African Diasporas pay at least 12% for sending £120.00 home, which is almost double the global average.
This petition aims at generating answers to the crucial question of why the world’s poorest region is coerced to pay the world’s highest money transfer fees.
“We therefore call upon all African Diasporas across the globe, friends and family members to support RED-UK in advocating for the money transfer system to be formally investigated as there is currently no justification for the exorbitantly higher charges” said Chipo Fowearker
Members of the public in the UK have called for urgent action to be taken as it is believed the amount of money being lost can be used to develop Africa as lots of work needs to be done in terms of development.
The money can be put to good use such as building schools, hospitals, clinics, training, development of roads and much more said Madeliene Muzenda who spoke to News of the South.
See link for petition below:
https://www.change.org/en-GB/petitions/african-governments-an-investigation-into-money-transfer-charges-on-remittances-to-africa
Kofi Annan the former UN secretary general is set to call for a full investigation by City regulators into the likes of MoneyGram and Western Union after his Africa Progress Report organisation accused the money transfer industry of ripping off the African diaspora to the tune of $1.8bn a year.
Mr Annan who recently spoke in London said that exorbitant fees levied on Africans working in the UK to send their money back home should be investigated, while the big money transfer companies should be investigated for monopolistic practices.
A report from a British economic development organization published early June revealed that Sub-Saharan African expatriates working in the U.S. and Europe pay twice as much to wire money home than their Southeast Asian or Latin American counterparts.
Transaction fees cost the region an estimated $1.8 billion annually, the report from the Overseas Development Institute (ODI) said.
According to a report by Watkins. K and Quatrtri M (2014) Western Union and MoneyGram account for two-thirds of remittance transfers, or $586 million of the loss associated with fees.
Western Union spokesman Dan Diaz explained that there are ways around the fees.
“A consumer can transfer money online from the U.K. for cash payout in Africa with no fee when paying via your bank account,” Diaz wrote in an email.
Chipo and team outside no 10 Downing Street in London
The Founder and CEO of RED-UK is not new to advocacy, Diaspora Engagement and Migration and Development activities. Her passion for policy influence in relation to issues that affect Africa and African Diaspora has taken her to Number 10 in the UK, to the UK parliament and to the United Nations in New York where she was a delegate at The People’s Global Action and a participant on the Informal Interactive Hearings of the Global Forum on Migration and Development in 2013 (http://www.gfmd.org/process/civil-society).
Foweraker and team are appealing for all Africans, African Diaspora and Friends of African and Africans to sign this petition. https://www.change.org/en-GB/petitions/african-governments-an-investigation-into-money-transfer-charges-on-remittances-to-africa
See link for petition below:
https://www.change.org/en-GB/petitions/african-governments-an-investigation-into-money-transfer-charges-on-remittances-to-africa
NB:You can also like the petition but remember to sign it as well
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