African and European leaders are set to meet this week to push for the reduction in the cost of money transfers incurred by migrants.

The leaders are expected to meet today (Wednesday) and Thursday at the Valetta Summit on migration.

In a leaked draft statement, the leaders have vowed to “by 2030, reduce to less than three per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than five per cent,” as reported by the Financial Times.

Speaking to our correspondent on the high cost of money transfer, the Chief Executive Officer, WorldRemit, and former United Nations Compliance Advisor, Dr. Ismail Ahmed, said that reducing the costs of remittances was a critical goal, both for migrants and their dependants overseas.

According to him, the majority of Africans are paying far too much for international money transfers, as much as $2bn in unnecessary charges every year.

He said, “In the current climate on migration, remittances ought to be highlighted as an increasingly important driver of development, far exceeding global aid budgets.

“However, the proposal tabled for this week’s Valetta summit misses three important aspects and nuances of international money transfers: focusing on a three per cent target for the cost of remittances is overly simplistic.”

Culled——-Punch