South Africa International Remittance Market is Expected to Reach Over ZAR 34 Billion by 2023: Ken Research
GURUGRAM, India, April 25, 2019 South Africa News
- It is expected that by the end of 2023, Banks would continue to dominate the domestic market as being the most preferred channel of remittance. While in the international space, ADLAs & MTOs together would supersede banks with over 30% share in terms of value of international remittance transactions.
- In terms of corridors, Angola-South Africa and Lesotho-South Africa are likely to showcase the highest CAGRs of close to 15% and 5% respectively during 2018-2023 in terms of total value of transactions in the inbound and outbound remittance space respectively.
- In domestic remittance market, the Urban to Rural Corridor is expected to showcase highest growth registering a CAGR of close to 11% by the end of the forecast period. In the next 5-7 years, the market growth is expected to be fueled by rising migration rates, simulative government regulations and declining remittance fees.
South Africa is expected to experience increased internal migration with the rising economic opportunities in the urban areas. The rural population is looking for prospects in the urban areas thus mounting the remittance market forward. The country continues to remain as being one of the costliest spaces to remit money from across the world. However, in the coming 5 years it is expected to see a decline in costs owing to the increasing rivalry and intense competition from the ADLAs. The government and banks in the country are increasingly focusing on financial inclusion moreover; radical technological innovations are expected to accelerate the same. Use of Bitcoin is expected to boom mainly as an easier and cheaper means for disposal to send money back to their families.
The South African market is expected to adopt digitalization at a rapid pace over the next 5 years. The smart phone users in South Africa would increase to 27.3 million users by 2022. This increase in penetration of technologically advanced mobile phones is expected to showcase the adoption of mobile wallets, e-wallets and other electronic modes of remittance services like WeChat across South Africa. South African government has been liberalizing their policies and regulatory frameworks for remittance service providers. The documentation, fee structure and business conducting guidelines are likely to be improvised by the regulators leading to a higher remittance business. The flexibility expected to be adopted by the government is serving as an incentive for both the service providers as well as the customers availing remittance services. The growth rate for mobile/digital channel is expected to be very high in the coming years since ADLAs are expected to be market leaders with their low pricing strategy focusing on making the services available to all the segments of the population. The market is also likely to expand in terms of the digital channels like mobile wallets and bitcoins which can be used readily for international transfers and deliver services within few hours.
People from SADC countries will continue to migrate to South Africa as a result of increasing income opportunities. As a result of increase in migration, the remittance sector is expected to showcase growth with rise in the value and volume of remittance across all major corridors. The government support policies are likely to increase and thereby augment the value of transactions remitted by the immigrants.
Ken Research in its latest study "South Africa Domestic and International Remittance Market Outlook to 2023 - By Channels Used (Banking Channels, Retailers, ADLAs & MTOs and Others), Remittance Corridors (Inbound-Outbound and Rural-Urban)" suggest that Western Union, MoneyGram, Hello Paisa, Mama Money and Mukuru together captured majority market share of the overall South Africa International Remittance market in 2018. The market is projected to witness a CAGR of close to 6% in terms of total value of transactions during 2018-2023.
Key Segments Covered in South Africa International Remittance Market
- By Channels used (Value of Transactions)
- Banking channels
- ADLAs & MTOs
- Retailers
- Others
- By International Inbound Remittance Flow Corridor (Value of Transactions)
- United Kingdom
- New Zealand
- Australia
- Angola
- Others
- By International Outbound Remittance Flow Corridor (Value of Transactions)
- Zimbabwe
- Lesotho
- Mozambique:
- Others
- By Work Profile (Value of Transactions)
Key Segments Covered in South Africa Domestic Remittance Market
- By Channels used (Value of Transactions)
- Banking channels,
- ADLAs & MTOs
- Retailers
- Others
- By Domestic Remittance Flow Corridor (Value of Transactions)
- Urban to Rural
- Urban to Urban
- Rural to Urban
- By Work Profile (Value of Transactions)
Key Target Audience
- Banks
- Money Transfer Operators
- ADLAs
- M-Wallet Companies
- Hawalas
- Convenience and Retail Stores
- Supermarket Chains
- South Africa Reserve Bank
- Bills and Payments Companies
- Investors & Venture Capital Firms
Time Period Captured in the Report:
- 2013-2018 – Historical Period
- 2019-2023 – Future Forecast
Companies Covered: ABSA Bank Limited, Albaraka Bank Limited, Bidvest Bank Limited, BNP Paribas SA – South Africa Branch, Capitec Bank Limited, China Construction Bank-Johannesburg Branch, Citibank-South Africa, Deutsche Bank AG-Johannesburg Branch, FirstRand Bank Limited, Habib Overseas Bank Limited, HBZ Bank Limited, HSBC Bank PLC–Johannesburg Branch, Investec Bank Limited, JPMorgan Chase Bank-Johannesburg Branch, Mercantile Bank Limited, Nedbank Limited, Sasfin Bank Limited, Societe Generale, Standard Chartered Bank–Johannesburg Branch, State Bank of India, The South African Bank of Athens Limited, The Standard Bank of South Africa Limited, First National Bank, Bank of Baroda, Bank of India, Bank of China, Bank of Taiwan, Western Union , Money Gram, Hello Paisa, Mama Money, Mukuru, Exchange4Free, Imali Express (Pty), Ace Currency Exchange (Pty), Forex World (Pty) Limited, Global Foreign Exchange (Pty) Limited, Inter Africa Bureau de Change (Pty) Limited, Interchange RSA (Pty) Limited, Master Currency (Pty) Limited, Sikhona Forex (Pty) Limited, Tourvest Financial Services (Pty) Limited, American Express Foreign Exchange Services, Tower Bureau de Change (Pty) Limited, Travelex Africa Foreign Exchange (Pty) Limited, Southeast Exchange Company (South Africa), Terra Payment Services South Africa (RF) (Pty), WorldRemit South Africa (Pty) Limited, Shoprite, Pep Stores, Pick n Pay, Checkers, Spar, Ackermans and Boxers.
For more information on the market research report please refer to the link below:
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Ankur Gupta, Head Marketing
Ken Research Private Limited
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SOURCE Ken Research
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