South Africa News
- It is expected that by the end of 2023, Banks would continue to dominate the domestic market as being the most preferred channel of remittance. While in the international space, ADLAs & MTOs together would supersede banks with over 30% share in terms of value of international remittance transactions.
- In terms of corridors, Angola-South Africa and Lesotho-South Africa are likely to showcase the highest CAGRs of close to 15% and 5% respectively during 2018-2023 in terms of total value of transactions in the inbound and outbound remittance space respectively.
- In domestic remittance market, the Urban to Rural Corridor is expected to showcase highest growth registering a CAGR of close to 11% by the end of the forecast period. In the next 5-7 years, the market growth is expected to be fueled by rising migration rates, simulative government regulations and declining remittance fees.
South Africa is expected to experience increased internal migration with the rising economic opportunities in the urban areas. The rural population is looking for prospects in the urban areas thus mounting the remittance market forward. The country continues to remain as being one of the costliest spaces to remit money from across the world. However, in the coming 5 years it is expected to see a decline in costs owing to the increasing rivalry and intense competition from the ADLAs. The government and banks in the country are increasingly focusing on financial inclusion moreover; radical technological innovations are expected to accelerate the same. Use of Bitcoin is expected to boom mainly as an easier and cheaper means for disposal to send money back to their families.