Funded by FinMark Trust and DFID, a new information leaflet and corresponding web page for people in the United Kingdom sending money home to family in South Africa was launched at an event at South Africa House at the beginning of May.
An information booklet for people working in South Africa who wish to send money to Botswana, Lesotho, Malawi, Mozambique or Swaziland was also unveiled at the event. An additional South African launch for the booklet will take place later in the year.
According to Atam Sandhu, MD of Profile Business Intelligence, the “Sending Money Home?” project has two important roles. The first is to inform the South African diaspora in the UK — and the Batswana, Basotho, Malawian, Mozambican and Swazi diaspora in South Africa — about the remittance options available to them.
The second is to increase transparency in the marketplace to encourage competition and innovation. The project makes remittances much more accessible and could eventually help lower costs. Up to half of the income of the less well-off is made by remittances, so they are important on a very basic level.
The difference in the fees charged by the most expensive and the cheapest providers between the UK and South Africa is £29,75, whereas for those sending money out of South Africa the difference can be up to R186 when sending R300 — a huge difference considering the relatively small amount sent. This fee has a massive impact on how much money is received.
The project has already seen drops in the fees providers charge for the other countries covered, as it becomes increasingly easy for people to see the prices different companies levy.
The project was started in March last year, and originally covered just six countries; with the addition of South Africa, Botswana, Lesotho, Malawi, Mozambique and Swaziland, the total number of countries now encompassed by the project is 16. There are an estimated 140 000 South Africans in the UK and this impartial source of information on remittance options available is crucial for those wishing to send money to South Africa.
The number of Batswana, Basotho, Malawian, Mozambican and Swazi people living and working in South Africa is difficult to estimate as a lot of them will be there on a temporary or informal basis. The need for an impartial source of information on ways to send money home for these people is undisputed, though, and will benefit both the people receiving the money and encourage financial inclusion to the benefit of the countries involved.
More information: Alex Herron at +44 (0)20 7332 6273 or [email protected]; or Jeremy Leach at 011 315 9197 or [email protected]. Copies of the leaflet and booklet can be downloaded from www.sendmoneyhome.org