East African Mobile Money Transfer Services Facilitate Remintances From Abroad

East Africans Abroad Send Home Billions of Dollars Every Year Via Mobile Phones

Because  of international money transfer services of most mobile phone companies in East Africa it is possible for such monies to reach relatives at home within the shortest time possible.

Soaring cash remittances from abroad have presented mobile phone companies with an opportunity to bolster commission incomes and deposits.

Most of East African remittances come from the United States of America, United Kingdom, Germany and Denmark.

Most web based payment gateways for East Africans eventually deliver money from individuals living abroad to those at home via mobile phone trasfer services

There are  many online gateways that facilitate the transfer of cash from Paypal to the mobile phones of recipients across the world.

Relatives in rural areas find mobile money to be very convient

Those who cannot access banks easily or not very educated will prefer to get money from their relatives abroad via mobile money.

Facts about remittances in East Africa

• A World Bank study showed that remittances have overtaken horticulture and tourism to become East Africa's  highest foreign income earners.

• 14 per cent of  adult East Africans receive remittances an average of seven times a year. 

•  Africa is emerging as a key source of remittances for East Africans competing with traditional lead markets North America and Europe, and eclipsing the Middle East.

• An estimated Sh38 billion was sent by Kenyans living and working in different parts of Africa last year.

• Neighbouring Uganda and Tanzania accounted for nine and seven per cent of the total inflows respectively.

• South Africa (four per cent), Botswana (one per cent), Sudan (one per cent) and Rwanda (one per cent) were the other top African sources of remittances.

• East African professionals on the continent are mostly working in the medical, IT and finance fields.

• Thirty five per cent of the recipients of remittances invest it in small business, 33 per cent use it to pay for university education for a family member while eight percent use it to build houses or buy land for housing.