The average cost of sending remittances has continuously been highest in Sub-Saharan Africa; in 2022, it was over 8%, more than twice the SDG objective. This makes it especially expensive to send money between African countries, as said in the data from the World Immigration Report.
With current technological advancements and the rise in migration, the world is more or less a global village now. This is reflected in the increasing interconnectedness of how we interact, earn, send money, and conduct business across borders.
We see it in the trade relations African countries have with other countries outside the continent, like the UK, the US, France, China, and other countries. Despite all of this, sending money as an African living in Africa is still difficult.
The Reality of sending money between African countries
This has led to the emergence of an ecosystem of payment methods and the innovation of several fintech solutions that have redefined cross-border payments and facilitate fast, cheap international transactions in foreign currencies. Africans must undergo the process of exchanging their local currency for foreign currency to conduct these transactions, for example, changing naira for dollars or pounds to complete a transaction.
The problem? Not enough of these solutions facilitate transactions across African countries, although a lot of Africans live and trade in countries other than their home countries; sending and receiving money from home is still a frustrating process. In an article by the World Bank in 2021, it highlighted that sub-Saharan Africa is the most expensive region to send money to.
The high cost of traditional transfers
Traditional financial institutions make cross-border payments in Africa expensive and slow:
Sending money from one country to another within Africa is still a majorly inconvenient, confusing, and time-consuming process due to the transfer protocols of traditional financial institutions and remittance companies. These protocols involve required paperwork, long bank hours, delayed verifications, lengthy processing time that could take days, and heavy transfer costs.
Informal transfer channels are risky and unreliable:
If, in trying to save time, one chooses to go through informal channels like making cash transfers through private individuals, there is the risk of being defrauded and of receiving a lower amount than expected due to the instability of black market rates.
No unified currency in Africa:
Finding a payment solution that is safe, fast, cheap, transparent, and accessible across various African countries is a daunting process. This is largely due to how the continent is structured, compliance regulations, fragmented financial infrastructure, and the distinct lack of a unified or dominant currency, as different African countries have a lot of different currencies.
Diverse regulations lead to hidden fees:
The significant variation in the economic and political landscapes of our countries means that each country has its own compliance and regulatory framework. Due to these differences and the lack of a cohesive financial structure between the 54 countries, transactions often pass through multiple channels and currency conversions, each adding extra fees and charges. Little charges here and there would eat into the payment and would significantly reduce the final amount received by the recipient.
Send money anywhere in Africa with Yolat
As the demand for an inclusive and safe payment solution that is accessible, convenient, and adaptable for different currencies and countries within the continent rises, various fintech innovations tailored for the African market are being built daily.
Yolat was built with your payment struggles in mind. You’re in Nigeria and unable to send funds to a sibling schooling in South Africa? Do you need to settle an invoice sent by your vendor in Uganda? Does your business in Ghana need a payment API that facilitates the transaction process between you and your customer in Nigeria? Then our product was built to meet all of your needs.
Yolat is building a fully integrated payment system to meet the growing demand for inclusive payment rails across Africa. With our free currency converter, you can see countries within Africa to send money to.
Why you should use Yolat
Convenience and ease of use:
Yolat has an intuitive user interface that lets you make transfers, pay bills, and easily send money.
Speed and efficiency:
Our process is designed to be fast and efficient because we know that when someone needs help or a bill needs to be paid, time matters. Your loved ones can receive funds quickly, and our competitive currency rates mean that more of your money goes to the people who need it, not to fees.
Flexibility and functionality:
Whether you’re sending a gift, paying bills, or just helping someone out, Yolat ensures that the process is smooth and effortless. And because it works both ways, Yolat allows you to receive funds just as easily, making it a perfect two-way street like it is with every relationship—for freelancers, families, and friends. The amazing part? You don’t even need to keep a balance with us to be able to make a transaction. And the sweet spot? Zero transfer charges! Whatever you send is exactly what they’ll get and vice versa.
Accessibility:
We currently facilitate sending naira to 39 countries, including the various African countries: Benin, Burkina Faso, Cameroon, Cote d’Ivoire, Gabon, Ghana, Kenya, South Africa, and many others.
Using Yolat guarantees you peace of mind in Africa and beyond. Maintain your peace of mind when you download our app on the Play Store or App Store.
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