Money transfer company MoneyGram says Africa has the potential to become one of the world’s most important remittance hot spots, if current growth trends continue.
The addition of send-and-receive agent partners solidified MoneyGram’s growing position and, in terms of network, it is becoming a large money-transfer company, with 310 000 locations worldwide.
In August last year, MoneyGram announced the addition of First National Bank (FNB) to its network of South African agent partners. This addition doubled MoneyGram’s local network to 1 000 locations.
The African remittance industry is enjoying vibrant growth and MoneyGram has almost doubled the number of its locations on the continent. It has opened a third Morocco office, in Casablanca, and its first mobile send-and-receive service with FNB, in South Africa.
The addition of a mobile service with FNB supports MoneyGram’s drive to provide convenience and accessibility for its customers.
Other African countries, such as Angola, Ghana, Nigeria, Senegal and Morocco, are well positioned to drive further growth for MoneyGram.
MoneyGram chairperson and executive officer Pamela Patsley says that the company achieved a 14% growth in transaction volumes in the 2012 financial year and a 13% increase in constant currency revenue for money transfers and other fees paid during the same period.
“In spite of a weak global economy and a competitive environment, we continued to excel, achieving double-digit growth in money-transfer transaction volume, con- stant currency revenue and agent locations. We’ve delivered strong free cash flow, while investing in our business for long-term growth,” she adds.
The company is well positioned in a dynamic and growing industry and it provides a valuable service to billions of unbanked and underbanked consumers worldwide.
According to World Bank, South Africa is the third-largest recipient of African migrants in the world, estimated at 1.8- million people, and almost 900 000 South Africans living abroad send money to their families in South Africa.