Tempo Money Transfer, in collaboration with its partner Express Union has begun a large project in Africa, where the France and Germany -based Tempo Money Transfer company has been carrying out intensive development. Following the mega study, Tempo Money Transfer issued a study on the remittances segment of a 1.1-billion populated region, in Africa.
The Paris-headquartered remittances provider which has a solid presence in the continent, and rolled out its pay-out networks in Nigeria, Guinea, Senegal, Gambia, Mauritania, Sierra Leone and Comoros focused the project in some of the Central African and West Africa nations including – Cameroon, Chad, Democratic Republic of Congo, Central African Republic, Ivory Coast, Congo, Gabon, and Rwanda. The completion of the project provides the customer with more than 400 pay-out locations, excluding those of EU’s local agents. Tempo Money Transfer, is currently looking at a 1.5 percent segment growth in 2016.
The company has rapidly been stepping up its network in the market.
Clients are now able to send money from Tempo locations in Germany and France and collect the cash in outlets operated by Express Union and its local agents in the countries mentioned above. The new network covers the countries’ big cities and towns, while outlets are safely located in business areas and shopping malls where the businesses successfully operate.
In his comments at the start of the project, president for Tempo, Mr. Jeffrey Phaneuf said that with its over 90 billion USD money transfer market, Africa features tremendous potential for ambitious players. The department of analysis, within Tempo Money Transfer, said the amount of transactions via money transfer systems has grown from 90 billion USD to 92 billion USD, in Africa during 2015. Demonstrating a slight growth of 0.5 per cent to 1.5 per cent throughout the period.
The company said that the volumes of remittances flow, mostly depend on the difference in life standards and GDP per capita in various countries, and while the US and Western European countries have been main donors, Asia followed by Africa, are the main recipients.
Talking with the team, some statistics from their study reveals that: Migrant workers account for over 90 per cent of overall money transfers; Both Sub-Saharan and North Africa have demonstrated positive slight growth in 2015; The main markets in the Sub-Saharan region are Nigeria, Kenya, South Africa and Comoros; In the north of the continent, the biggest segment has been Morocco, Egypt, Algeria, Sudan and Tunisia; The potential for demand is on the rise and GDP in both parts of the continent vitally relies on the remittances sent mostly from Europe and the US.
Additionally, Tempo emphasized on the importance of money transfer in building some African economies. Using Eritrea as an example, 40 per cent of the country’s GDP is via money transfers while the situation is similar to that of Burundi, Comoros, and Sierra Leone – where money transfers accounts for up to 25 per cent, 20 per cent, and 15 per cent respectively.
In Nigeria where the standards of living are higher, the degree of GDP dependence on remittances has been around 5 percent.
The company together with one of Africa’s leading financial technology providers, are in the process of launching a large-scale project in Nigeria.
It enables clients to send money from Tempo’s locations in Germany and France, to credit the funds into any bank account or mobile wallet, of a cell operator in Nigeria. The Nigerian project is very close to completion. “Development in Africa is one of our top priorities. The key elements of the strategy here are enlarging the size of the pay-out network, as well as widening the product spectrum, this includes not only account crediting, but in the future, bill payments. African countries have rapidly developing infrastructure and intellectual potential for this,” Mr. Phaneuf said.
According to Tempo’s estimates, this remittances segment accounted for over $25 billion with a 1.5 per cent growth while Togo, Uganda, Niger, Guinea, Cameroon, and Algeria recorded 400 million, 1.2 billion, 200 million, 100 million, 260 million, and 2.2 million USD.