MoneyGram looks at expansion in Africa
CAPE TOWN: MoneyGram International leaders were in Cape Town, South Africa this week to discuss the company's focus on its expansion in the African remittance market. During the past five years, MoneyGram has quadrupled its network in Africa, doubled transaction volume and opened an office in Morocco, its third in Africa.
Speaking in conjunction with MoneyGram's annual Africa Agent Partner Conference, 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 United States, Canada, United Kingdom, France and Spain, it also is an important send country.
Complying with rules, regulations
"MoneyGram'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 recognised for their contribution to the economic health of the region's nations, as well as for their vital importance to recipient families.
Postive outlook for global remittance business
In 2010, the global remittance business was in excess of US$400 billion, an increase of 6% over 2009. By the end of 2010, World Bank estimates indicated Africans abroad sent back a total of US$21.5 billion - a 4.4% increase from the previous year. World Bank experts also forecast that the amount of money African migrants send back to their countries of origin will reach US$22 billion in 2011 and US$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 conducted through MoneyGram have grown exponentially at nearly 300% during the past four years.
