African Posts to develop cross-border money transfer network
Representatives from 25 African postal operators have committed to work together to develop a pan-continental electronic money transfer network. An action plan was drawn up by members of the Pan-African Postal Union (PAPU) earlier this month, taking forward a priority area for the union, an agency of the African Union.
Meeting in Nairobi, Kenya, 70 representatives from English-speaking countries and several Indian Ocean islands heard that money transfers are an “essential” part of a country’s economy.
World Bank figures suggest that for Lesotho and Gambia, money transfers account for as much as 10% of their GDP.
Rodah Masaviru, the secretary-general of the Pan African Postal Union, said the action plan would mean taking advantage of 30,000 post offices across Africa for providing money transfer services.
“We should quickly translate this action plan into concrete measures,” she said.
Implementation
National project managers will be designated to drive the programme forward, to establish partnerships with financial companies and install the required IT systems to provide the pan-African network.
Under the plan, the African nations will draw up national action plans in line with the regional strategy, under the auspices of the overall Universal Postal Union (UPU) policies on money transfers.
The UPU is keen for the African system to link in with its global transfer network, called POST*Net EDI, and integrate with its global money transfer software application, the International Financial System, as soon as possible.
The system would mean guaranteed reliable and affordable money transfers, according to UPU regional coordinator for Africa, Gladys Mutyavaviri.
Commenting on the ambitions of the African Posts, Kenya’s postmaster general Ali M. Hussein said it was important for Africa’s postal operators to increase their market share in the money transfer segment, both regionally and internationally.
“The future of the Post will depend on its ability to make effective use of electronic services,” he said. “Consequently, financial services, and in particular money transfer services, myst be a priority for all countries.”
