logoBC
Yaoundé - 27 January 2023 -
Finance

Cameroon: WorldRemit expects business to grow in 2023 despite World Bank's downward forecast for SSA

Cameroon: WorldRemit expects business to grow in 2023 despite World Bank's downward forecast for SSA
  • Comments   -   Tuesday, 13 December 2022 11:52

(Business in Cameroon) - British online remittance transfer platform WorldRemit, leader on the global market, revealed in a recent note that the Cameroonian diaspora sent a total of £75 million (or CFA57.2 billion at the current exchange rate) home via the platform in 2022. Contradicting the World Bank, which predicts a decline in remittances to sub-Saharan Africa in 2023 (from +5.2% in 2022 to only +3.9% in 2023), the British platform expects activity to continue to grow in Cameroon.

Indeed, the World Bank estimates that remittances only exploded in 2021 (+16.4%) with spillover to 2022 because of the Covid-19 pandemic, which prompted the African diaspora to send more money home to support their families. However, Imane Charioui (pictured), WorldRemit's Director for Francophone Africa and the Middle East, believes that “as online money transfer tools become more and more a part of people's lifestyles, online money transfers will continue to grow steadily in 2023. This shift to the digital that became more pronounced with the Covid-19 episode is expected to continue and many technology-savvy customers now prefer these services, which are cheaper and more convenient.

In a recently published paper entitled “Will remittances to Cameroon continue to grow in 2023?” Imane Charioui pursued her optimistic view saying that "technology has a prominent place in people's lives in Cameroon, and remittances are no exception. The sector was relatively new a decade ago but has now become one of the most used money transfer methods. This is evidence that digital money transfers and remittances are just as secure as a bank transfer and much faster, cheaper, and more convenient.”.

Another good factor is that Cameroon has long been a very promising market for the world leader in digital money transfers. “Cameroon is our largest Francophone market in Africa and one of our top eight markets globally. It is also the fastest growing one with 120% annual growth,” Andrew Stewart, then regional director for Africa and the Middle East at WorldRemit, revealed back in 2018.

According to WorldRemit analysts, the company has seen great success since it launched operations in Cameroon in 2016, as it allows users to make direct transfers to recipients' mobile money wallets. Data from the Bank of Central African States (Beac) reveals that in 2020, Cameroon alone held 64.8% of all Mobile Money accounts in Cemac and carried out 73.1% of money transfers in the region.

Written by Brice R. Mbodiam

Translated from French by Firmine AIZAN

 

cameroon-the-special-tax-on-petroleum-products-will-soon-be-extended-to-natural-gas-despite-gdc-s-request
The Cameroonian government is continuing its process to extend the special tax on petroleum products to natural gas, despite a request from Gaz du...
cameroon-acquires-a-pavilion-at-the-paris-agriculture-show-a-first-time
For the first time, Cameroon has acquired a pavilion at the Paris International Agricultural Show (SIA). This year, the event will take place from...
cameroon-hosts-afwa-symposium-on-drinking-water-production-distribution
The Cameroonian capital is hosting, starting today, a two-day international symposium on the management of companies active in the production and...
cameroon-memve-ele-dam-s-low-production-leads-to-rolling-blackouts-eneo
The Cameroonian population will soon experience episodes of rolling blackout, which the power utility Eneo blamed in a January 25 statement on the decline...

Mags frontpage


Business in Cameroon n110: April 2022

Covid-19, war in Europe: Some Cameroonian firms will suffer


Albert Zeufack: “Today, the most important market is in Asia”


Investir au Cameroun n120: Avril 2022

Covid-19, guerre en Europe : des entreprises camerounaises vont souffrir


Albert Zeufack: « Le marché le plus important aujourd’hui, c’est l’Asie »