Posted by: Martin | April 2, 2010

Sending money to Africa

I’d say the most important aspect of sending money to Africa would be to have someone one trusts on the receiving end.

Small amounts

That aside, for small amounts my experience is that the cheapest and fastest way is to:

1)  Open a bank account in a niche bank that have no fees for international  ATM withdrawals.  The currency spread can’t be avoided but there are banks where the spread is low and they are transparent about it. The bank I use have a currency spread of 1.65%.

2) Create a separate account with a Visa debit card linked to it. Preferably with no available  credit.

3) Give the Visa card and the pin code to the receiver.

4) To send money, just transfer over funds to the account linked to the card and tell the receiver the amount that can be withdrawn.

One slight worry with this method is that it might raise some sort of flags with the bank, especially if the other account is used for withdrawals back in Europe at the same time.  However, I have been using this method for over 7 years now and it has been working fine.

Larger amounts

To buy a house or so, the above method involves too much cash handling on the receiving end, making it impractical and possibly dangerous. For larger amounts traditional bank transfers seems to be the best option. As discussed in a previous post, my bank in Europe told me it is possible to send money to the Ivory Coast in person, but not through online banking.

Advertisements

Responses

  1. Try the United Bank of Africa, its Nigerian, but has branches in Abidjan and London.

  2. […] previously on this blog I wrote about the issue of sending money to the Ivory Coast. Now the main concern is getting money out of the Ivory Coast.  The risks are […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: