Remittances, or sending money back home, are a common denominator that connects Chinedu, a Nigerian living in the UK; Keza, a Rwandan in Belgium; Thabo, a South African in Scotland; and Houssaini, an Algerian in Canada.

This is because the majority of Africans who migrate to foreign countries do so to get a better life for themselves and their loved ones back home. 

Over the years, remittances have become a lifeline for over 200 million Africans. They have supported the livelihoods of African families and, beyond that, they represent the unity, generosity, and resilience of Africans both at home and abroad.

Remittances to Africa increased from $67 billion in 2016 to $87 billion in 2019. They decreased by 4% in 2020 due to the COVID-19 pandemic, then recovered in 2021, rising by 9% to hit $91 billion.

These figures underscore the importance of remittances to Africa and the need for efficient ways to make these remittances.

There are several ways to send money from abroad to African countries. However, before exploring these methods, there is a need to examine the factors to consider before sending money to Africa.

Factors to consider before sending money to Africa

Some of these factors include the platform’s reputation, dependability and speed, exchange rates, and transfer fees.

Platform’s Reputation

Money is a sensitive subject. This is the reason financial institutions face intense scrutiny and regulation.

It is important to make sure such institutions do not cart away the wealth of their customers. So, when choosing a platform to send money to your loved ones, you must ensure that the platform is reputable and regulated.

To the best of its ability, its security architecture must be impervious to fraud and cyberattacks.

It needs to protect the users’ funds and financial information, preventing the transfer from being intercepted by unauthorized third parties.

Reputable and safe platforms are regulatory compliant and follow anti-money laundering (AML) protocols, among other security laws. 

Dependability and speed 

Africans do not just make remittances for the fun of it—they do it to contribute to the well-being of their loved ones back home.

They do it to pay for food, medical bills, rent, salaries, and other necessary bills. Therefore, a money transfer method must guarantee consistent and hitch-free transactions.

Funds need to reach the recipient on time without disruptions. And if there is any sudden disruption, there should be efficient customer support to resolve the issue promptly. 

The time taken to complete a transfer is another important factor to consider. This is why many do not go for traditional banks: though reliable, banks take several business days to complete transfers.

Digital remittance services, on the other hand, leverage technology and streamlined processes to achieve faster transfers. 

Exchange rates

Exchange rates are always a key factor when making international transfers, especially for weak currencies that fluctuate frequently. Exchange rates determine the amount of cash the recipient will receive.

For instance, at the end of January 2025, 1 British Pound Sterling (GBP) exchanged for about 1,862 Naira (NGN). However, currently, 1 GBP is worth around 2,122 NGN. 

Also, if a money transfer platform offers poor exchange rates, the recipient loses a significant portion of the money during conversion. This is why it is important to compare exchange rates from different platforms before initiating a transfer.

Transfer fees

International money transfers are always associated with transaction fees because platforms use them to power transactions and make profits.

Most times, these charges are high and come with hidden costs that can drastically eat into the cash received. So, like in exchange rates, it is also necessary to compare the charges from different platforms. 

What are the best options for sending money internationally for Africans?

These days, there are several options available for international money transfers by Africans. These include traditional banks, money transfer operators, and fintech solutions. We will examine these options alongside their pros and cons. 

Traditional Banks

Traditional banks are a common option for making international money transfers. They are widely trusted, heavily regulated, and offer structured services for cross-border payments. Examples of these banks include Barclays, HSBC, JPMorgan Chase, Bank of America, etc. 

Strengths

• Established and reputable
• Subject to strict financial regulations
• Have physical branches

Weaknesses

• Charge high fees
• Slow processing time (up to 5 days)
• Poor exchange rates

Money transfer operators

These are special companies that facilitate international remittances without the need for a traditional bank account.

They operate both online and through physical agent networks, and support cash pickups, mobile wallet transfers, and direct bank deposits. Popular examples include Western Union, MoneyGram, and WorldRemit.

Strengths 

• Easily accessible because they have cash pickup points and do not require a bank account
• Typically faster than bank transfers

Weaknesses

• Charge higher fees than banks 
• May apply markups to exchange rates, hence making them less favourable
• Long queues at cash pickup locations
• May be prone to scams and fraud despite their security measures

FinTech solutions (Digital wallets & Online money transfer platforms)

As technology-driven platforms, these solutions enable fast, seamless, and often affordable international money transfers.

They include digital wallets and online money transfer apps that operate entirely online, allowing users to send funds directly from their mobile devices or computers. Examples include OhentPay and Wise. 

Strengths

• Speedy transactions
• Allow quick and easy transfers
• Offer competitive/better exchange rates than banks

Weaknesses

• May come with hidden charges, such as fees for currency conversion
• May add markup to their rates

But why does OhentPay stand out?

OhentPay is designed as a reliable and intuitive payment platform for international money transfers, both for personal and business cases.

It thrives on its transparent pricing, fast processing times, and global reach, which make it a cost-effective and efficient payment solution.

Features/benefits of OhentPay

• Keeps costs predictable with a fixed fee of £1.50 for personal accounts
• Supports over 40 currencies and operates in 190+ countries
• Supports direct bank transfers with swift processing times
• Highly regulated and secure with FCA regulation, PCI DSS compliance, and SOC 2 certification
• Simple and intuitive interface alongside reliable customer support for easy account management

Send Money the Smart Way with OhentPay

Sending money back home as an African does not have to be expensive or complicated. OhentPay offers fast, secure, and affordable transfers, ensuring your loved ones or business partners receive funds without unnecessary delays or fees. 

If you are ready to send money, sign up on OhentPay today and experience stressless international money transfers.