Make sending money home to Africa cheaper, and publish what every route costs

Why this matters

Remittances into sub-Saharan Africa reached about $57 billion in 2024, more than the region received in aid. Digital transfers cost 4.59% on average, against 7.30% for cash. Each percentage point cut from the cost would keep about $570 million a year with African families.

Since 1 January 2026 the United States has taxed transfers paid in cash, money orders or cashier's cheques at 1%. Transfers paid from a US bank account or card are not taxed. In the first half of 2026, money sent from the United States to Kenya fell by 12.6% to $1.18 billion. Sending $200 on that route costs 4.26% on average. Senders who move from cash to an account save on both the tax and the fee.

The worst prices are set inside Africa. Sending money from South Africa to Malawi costs 31.48%, and from Kenya to Uganda 12.75%. The Group of 20 (G20) major economies aims to bring the cost down to 3% by 2030, with no route above 5%. In October 2025 the Financial Stability Board, which reports to the G20 on this target, found that costs worldwide were barely falling. African central banks set the rules on these routes.

Four levels of action

1. 1

   What Africa asks of the world

   The G20 should keep its target of 3% by 2030. It should also name African routes as a priority in its plan for cheaper payments across borders. The US Treasury should publish how it collects the tax on cash transfers, so its effect can be measured.

   Who

   G20 finance ministers, the Financial Stability Board and the US Treasury

   When

   Annual meetings of the International Monetary Fund (IMF) and the World Bank, Bangkok, October 2026

2. 2

   What the African Union does

   The African Institute for Remittances is an AU body based in Kenya since 2014. Using World Bank price data, it publishes a yearly table of what each route costs and how much money still moves in cash. Afreximbank, the African trade bank that runs PAPSS, links the table to the AfCFTA rules on digital payments adopted in February 2025.

   Who

   The African Institute for Remittances with Afreximbank

   When

   First table by mid-2027

3. 3

   What regional groups do

   Southern Africa uses TCIB, an instant payment system for small transfers that runs in 12 SADC countries. East Africa uses the East African Payment System, which links Kenya, Uganda, Tanzania and Rwanda, with Burundi due to join by December 2026. In West Africa, 15 central banks had signed up to PAPSS by March 2025. Mali, Burkina Faso and Niger left ECOWAS in January 2025 but still share the CFA franc with their neighbours. Their shared central bank, the Central Bank of West African States, carries the work for them. They are suspended from AU meetings, so the yearly table covers their routes from World Bank data.

   Who

   Central bank governors in SADC and the East African Community; the Central Bank of West African States

   When

   Cost targets by early January 2027

4. 4

   Which country goes first, and why

   Kenya goes first on money from the United States. It has measured the effect of the US tax, and the United States supplies 43.5% of its remittances. It hosts the African Institute for Remittances and belongs to both the East African Payment System and PAPSS. The Central Bank of Kenya publishes the licensed channels that take money from US bank accounts, with their costs. Kenyan embassies help senders move from cash.

   Who

   The Central Bank of Kenya and Kenyan embassies

   When

   Channels published by 30 November 2026; campaign for senders in December 2026

Before another country can do this

• A central bank willing to publish licensed channels and their costs.
• Mobile money or an instant payment system that can receive money from abroad.
• Membership of TCIB, the East African Payment System or PAPSS.
• Official and market exchange rates that are close together.

What does not carry over from the first country

• Kenya's very high use of mobile money.
• A large community of Kenyans in the United States. Routes from Europe and the Gulf face other rules.
• Membership of the East African Payment System, which covers only East Africa.

Who else is ready

Has this worked before?

Directo a México links the payment system of the US Federal Reserve to Mexico's central bank. Money moves from a US bank account to any participating Mexican bank for $0.67 a transfer, at close to the rate banks use with each other. Two central banks built a cheap route themselves. Source (opens in a new tab)

Banco de México: the Directo a México service

First steps

1. African Unionthe African Institute for Remittances and Afreximbank agree what the yearly table will measure, using World Bank data, by the end of December 2026.
2. Regional groupsSADC central bank governors set cost targets for the Malawi and Zimbabwe routes on TCIB, and East African governors do the same for their payment system, by early January 2027.
3. Kenyathe Central Bank of Kenya publishes the licensed channels from US bank accounts and their costs by the end of November 2026, and embassies run a campaign for senders in December.

Who acts, and with what

Who leads

Central banks decide for their own countries; the African Institute for Remittances compares costs; SADC, the East African Community and PAPSS align the rules

Instrument

National licensing and exchange rules, regional cost targets and a yearly continental table of costs

How progress is checked

Sending money from the United States to Kenya costs under 4%, and the three dearest routes in Southern Africa cost under 10%, by the end of 2027

Signal to change course

The share sent in cash has not changed by mid-2027, or no yearly table appears

What stands in the way

Some senders have no bank account or cannot pass identity checks, so they use cash. Controls on foreign currency widen the gap between official and market exchange rates. Transfer firms earn more on cash.

Cost and money

No one has published a checked estimate of what providers and campaigns would cost. The World Bank, the Gates Foundation, the International Fund for Agricultural Development and AfricaNenda have already paid to lower the cost of joining TCIB. Each percentage point cut keeps about $570 million a year with families.

Who else contributes

What each audience can do