Every year, millions of people of African origin living abroad send money to their families and friends. These remittances to Africa have exceeded $75 billion in recent years, representing about 12% of the global annual total.

However, despite the high amount of remittances, challenges remain when it comes to sending money to certain African countries. These challenges include, among others:

Despite the high amount of transfers, several challenges persist for certain African countries:

• Diverse regulations depending on the country

• Fluctuating exchange rates

• Varied, often hidden transfer fees

• Challenges for the recipient to access funds

These obstacles complicate the search for the best offers for your money transfers, ensuring that your loved ones receive the maximum possible amount.

Africa and the Unbanked Population

The unbanked African populations particularly exacerbate these challenges. It is estimated that about 50% of the African population does not have a bank account or access to financial services.

Opportunities Through Technology

With technological advancements, these challenges become opportunities for improved services and alternative options. For example, KimboCare addresses the above issues by offering the possibility to pay for healthcare instead of sending money to loved ones. Through blockchain technology, KimboCare allows its users to instantly pay healthcare bills for their family without intermediaries. To learn more, click here.

Having learned from their frustrations, the authors of this article present various money transfer methods to help you choose the most appropriate one whenever you want to send money to your loved ones.

We also have detailed articles on money transfer methods to:

The Best Ways to Send Money to Africa

The best way to transfer money to your country depends on your needs; it’s up to you to decide whether you need a fast, inexpensive, secure, or convenient transfer. Below, let’s examine each choice in detail.

– Cheapest way to send money to Africa: online money transfer and exchange services generally offer the best exchange rates and the lowest fees.

– Fastest way to send money to Africa: mobile banking services and mobile wallets offer instant transfers.

– Easiest way to send money to Africa: it all depends on the access your loved one has; in many cases, cash transfers are the simplest way to send money without going through a bank account.

– Safest way to send money to Africa: banks are subject to stricter measures than other transfer operators. They offer the most protection and security. However, they are often more expensive and slower.

– Most transparent solution to send money to loved ones: the KimboCare platform allows you to purchase “health credits,” which can be used to instantly pay bills related to healthcare or medical services received by your family. No need to worry about exchange rates or hidden transfer fees.

How to Recognize the Best Way to Send Money to Africa?

The best transfer option will depend on the accessibility of these services in your friends’ or family’s locality. Furthermore, you can pay for other services, including their healthcare bills, allowing you to avoid unfavorable exchange rates or high fees.

You should also check if a provider offers the currency you need or if it operates in both countries involved in the transfer. The problem is less if you want to send money from the United States or the United Kingdom, but it can become more serious when sending money to Africa from India or another African country.

Below, we evaluate the different money transfer options to Africa.

The Most Economical Way to Send Money to Africa

In most cases, a money transfer or exchange service is generally the cheapest way to send money to Africa.

However, it can sometimes be difficult to identify the cheapest transfer option. The reason is simple: a provider may offer a fee-free transfer but have an unfavorable exchange rate. Conversely, other solutions offer excellent exchange rates but higher transfer fees. Some operators may also have a fee structure that is not compatible with your preferred type of transfer. For example, a fee model that charges a fixed percentage of the transfer amount is less attractive when dealing with large sums.

Fortunately, many transfer service providers have improved their transparency. Sometimes, they offer calculators on their websites to indicate exactly how much your beneficiary will receive.

The Fastest Way to Send Money to Africa

With mobile banking services or mobile wallets (like PayPal), you can make instant transfers, and your loved one can access the money as soon as the transfer is complete.

Similarly, online money transfer services are relatively fast. A transfer can take less than a day, depending on the country. Some providers can send money in a few hours, or even minutes.

Finally, the duration of your money transfer will also depend on your payment method (cash, debit card, bank transfer) and the possible existence of official controls.

The Easiest Way to Send Money to Africa

The easiest money transfer method will depend on how your family will withdraw the funds. For many people without a bank account, cash payments are the simplest withdrawal method.

KimboCare also offers a simple solution to send healthcare instead of money. Their offering overcomes challenges related to high fees, poor exchange rates, and lack of access to a financial service.

Comparison Between Different Money Transfer Methods to Africa

In most cases, an online money transfer service is the best choice – but not always. Below, we explain the specific circumstances in which you might choose another type of transfer or use another solution, including KimboCare’s health credits.

Bank Transfers

In Africa, there are several types of banking institutions, including local and foreign banks, mutual or cooperative banks.

Traditionally, bank transfers to Africa are the safest way to send money. Moreover, banks generally offer protections, including coverage for missing amounts. Another advantage is that the beneficiary is not required to withdraw all the money at once or to withdraw a lump sum in cash. These factors still make banks the safest option for transferring large amounts, especially if the money needs to be spent over a certain period.

However, bank transfers have several drawbacks:

– Banks struggle to offer competitive exchange rates;

– International banks sometimes offer free transfers between branches; however, bank transfers generally come with high fees;

– Longer wait times: different time zones and limited bank hours exacerbate the situation;

– Banks are subject to more stringent requirements and checks than other money transfer methods, which can extend processing times.

Thus, while bank transfers are one of the safest ways to send money abroad, especially for large amounts, they generally are not the most economical or fastest method when sending money to Africa.

Online Money Transfers to Africa

Today, there are many reputable companies that offer money transfers from multiple currencies to numerous countries. Their wide coverage generally allows them to provide the fastest service when sending money to Africa and around the world, from the United States to India.

The biggest advantage is the ability to make an online transfer to many types of institutions, including a family bank account, a cash pickup point, or a mobile wallet.

The main competitive advantage is that online money transfer operators have fewer restrictions than banks and can therefore offer better exchange rates and faster transfer times. Their transfer fees are generally lower than those of banks, and they offer more payment options, including direct payment by credit card or direct debit.

Here is a list of some money transfer companies:

– MoneyGram

– Revolut

– Wise

– WorldRemit

– Xoom

The services of these companies are relatively reliable. However, not being traditional banks, they do not benefit from certain protections and are unable to offer them. Nevertheless, due to their exchange rates allowing significant savings, many people find them worth trying.

Most companies offer comparison tables on their websites showing their fee structures and transfer times compared to other operators. It is useful to use some of these free calculators to know the exact amount your family will receive.

Service Transfer Fees Exchange Rates Delivery Times Payment Options
MoneyGram High Average Instant to 1 day Bank transfer, credit card, cash
Revolut Low to Average Very competitive Instant Bank transfer, debit card
Wise (formerly TransferWise) Low Very competitive Instant to 1 day Bank transfer, debit card
WorldRemit Low to Average Competitive Instant to 1 day Bank transfer, mobile wallet, cash pickup
Xoom Average Competitive Several hours to 1 day Bank transfer, credit card
KimboCare Low Transparent Instant Credit card, digital wallet

Sending Health Credits

If some of the above options are not suitable, another solution is to pay for healthcare instead of sending money. KimboCare allows you to deposit money into an online account, which is directly and instantly converted into “health credits.” These health credits can be used within a network of quality healthcare providers in Africa. Thus, without worrying about exchange rates or transfer delays, you can easily cover your family’s expenses instantly.

Cash Pickup

This is a fast and convenient way to send money when amounts are smaller or when the recipient needs money quickly.

Before the advent of online banking and exchange services, cash pickup transfers were the most common way to send money to any country. Today, in some regions of Africa where banking or online transfers are not well developed, cash transfer would still be the only option. Western Union has long been a key player in this area, although it is now being competed with by several other operators.

Before making a money transfer, first ensure that there is a transfer agency in the locality where your family lives. In recent years, some companies have partnered with local providers to expand their reach. This is the case in South Africa, where Western Union has partnered with ABSA, Wise uses the Mukuru network, and MoneyGram offers its services through FNB.

While this solution is limited by locality, it remains one of the best ways to transfer money to Africa if your recipient does not have a bank account. The process is as simple as sending a voucher or presenting an ID card.

Mobile Wallet

If your family or friend has a mobile wallet, you can directly and instantly send them money through this method. They receive the money as soon as the transaction is complete.

Examples include MoneyGram services through Standard Bank, or WorldRemit services facilitated by MTN, Virgin, or Cell.

However, you need to consider withdrawal fees. For example, PayPal has a wide network that accepts transfers and free payments if you use its platform. However, it is expensive (about 5%) if you withdraw money from their platform to a bank account.

Postal Money Orders

It is possible to send a postal money order to African countries through the post office. Rules and requirements may vary from one country to another. Therefore, it is important to check the specific country where you wish to perform this operation.

Other Things to Know About Money Transfers to Africa

What Amount Can You Send to Africa?

There are sometimes limits and restrictions on the amount you can send, depending on the transfer method and the currency you use. However, this issue can be circumvented by making several transfers at the maximum value.

Requirements to Send Money to Africa

Each service has its own requirements, but generally, expect to provide the following documents:

– Your official ID, a family member’s ID, or a friend’s ID;

– The recipient’s full name as it appears on their ID card, as well as their address;

– The contact details of their bank account or financial services they have access to, sometimes including the bank’s address and the recipient’s address associated with the account.

What Do You Need to Send Healthcare to Family Back Home?

If you decide to send health credits instead of money, please follow these steps with KimboCare:

– Create an account with your email address;

– Deposit money into your account, which will then be transferred to your family as “health credits.” You do not need to exchange currency and can reload as many credits as you want to use at any time;

– Enter the full name of your family member or friend (as it appears on their national ID card);

– Select the healthcare services you need and the nearest healthcare provider. Your family can benefit from immediate medical assistance whenever they need it.

Conclusion

Several factors must be considered to identify the best way to transfer money to Africa. Choosing the operator offering the best exchange rate or the most competitive fees can take a lot of time each time; however, the right choice can save a lot of money.

To overcome these challenges, you can choose the solution that allows you, through the health credits you purchase, to help your loved ones access quality healthcare. Additionally, with KimboCare, you can also accurately track your money’s spending and save time in searching for the most advantageous fees and exchange rates.