There are an estimated 3.3m migrant workers from other SADC countries in South Africa, between them sending around R11.2 billion rand home each year – R7.6 bn of which is estimated to flow through informal channels such as sending cash with a bus or taxi driver. The sheer volume of cross-border remittance flows and the large proportion sent informally indicates not only an untapped market opportunity for the formal sector to capitalize on, but also a strong policy imperative to reduce access ...read more
There are an estimated 3.3m migrant workers from other SADC countries in South Africa, between them sending around R11.2 billion rand home each year – R7.6 bn of which is estimated to flow through informal channels such as sending cash with a bus or taxi driver. The sheer volume of cross-border remittance flows and the large proportion sent informally indicates not only an untapped market opportunity for the formal sector to capitalize on, but also a strong policy imperative to reduce access barriers to the formal financial system for migrant workers and facilitate formalization of cross-border remittances. These are the high-level findings of a recent study commissioned by FinMark Trust and conducted by DNA Economics.