Here Are The Five Cheapest Ways to Send Money to Africa in 2023

As a South African living and working abroad, I've frequently found myself needing to send money back home for all sorts of reasons. It can be a rather tricky process — particularly for the recipient, who must fill out a form to declare themselves as the beneficiary of the incoming funds to the reserve bank before the money can be released into their bank account. And none of this is to mention the high fees and terrible exchange rates that generally accompany the process of sending money to SA rands via the bank.

Sadly, high fees, untransparent exchange rates, scanty financial infrastructure, and burdensome regulatory steps stand in the way of transfers to many African countries, not just to South Africa. On the positive side, though, Africa is a thriving and entrepreneurial landscape with many new and innovative modes of payment, such as mobile wallets and same-day cash pick-ups.

In this guide, we explore the five apps currently offering the cheapest ways to send money to Africa for different types of transfers and to various countries across the continent according to millions of search results from our comparison engine here at Monito. Finally, we'll discuss some useful tips to find the best way to transfer money to Africa. If you want to skip ahead to find the best deal right away, then compare the cheapest providers with Monito's live comparison tool below. 👇

Cheapest to Nigeria: WorldRemit

WorldRemit is a UK-based online remittance provider that's hands-down one of the cheapest ways to send money to Africa, especially to Nigeria. You can send money to any bank account in Nigeria with low fees and excellent exchange rates, and you can also send money for cash pick-up, although the latter is only available in US dollars, not yet in naira.

Cheapest to Ghana: Remitly

Remitly is a US-based digital remittance service that's frequently the fastest and cheapest way to send money to Africa on Monito. The platform offers various pay-in and pay-out options (including card payments, bank transfers, and cash services) and is especially competitive for transfers to cedis in Ghana.

Cheapest to Kenya: Wise

London-based fintech Wise is a world-class option for sending money to Africa and frequently ranks as the cheapest way to transfer money internationally to Kenya on Monito. According to the Monito Score, Wise is also ranked as the best money transfer service of all, and its mobile app is ranked the best money transfer app. In short, you can't go wrong by picking Wise the next time you send money to Kenya.

Cheapest to South Africa: CurrencyFair

Based in Ireland, CurrencyFair is a trusted international money transfer offering excellent fees and exchange rates for transfers to the South African rand. It only supports bank deposits to the country though, meaning you cannot send cash to someone in South Africa with CurrencyFair.

Cheapest to Uganda: Paysend

Paysend is an international money transfer app predominantly specialised in card transfers, although it offers excellent fees and exchange rates for a whole variety of transfer types and corridors. It's frequently the best way to send money to many countries in Africa on Monito, including Uganda.

Cheapest to Cameroon: Western Union

Founded in 1851, Western Union is one of the largest and most well-known international money transfer companies in the world. Western Union offers access to cash pay-outs at their 550,000 agent locations in 200 countries and territories, including Cameroon. It has also built up its digital money transfer network (usually cheaper than its brick-and-mortar services). As long as you send bank transfers or debit card payments with the online service, Western Union often offers low fees. Your recipient will usually benefit from more favorable exchange rates when receiving bank transfers, but we still suggest cash pick-ups because they offer reliability, convenience, and easy access.

Sending Money to Another African Country?

Are you looking to send money to another African country not found on this list? Here are the providers that were, on average, the cheapest on Monito comparisons between October 2022 and October 2023 to other popular remittance destinations in Africa:

• Cheapest way to send money to Zambia: Remitly
• Cheapest way to send money to Tanzania: Remitly
• Cheapest way to send money to Ethiopia: WorldRemit
• Cheapest way to send money to Zimbabwe: Remitly
• Cheapest way to send money to the Ivory Coast: WorldRemit
• Cheapest way to send money to Namibia: Remitly
• Cheapest way to send money to the Gambia: Remitly

If you'd like to find the best deal in real time for your individual transfer needs and preferences, we recommend running a search on our leading comparison engine. This will help you identify the best provider at the moment and save a lot of money compared to opting to transfer with your bank.

A Few Last Things You Should Know About Sending Money to Africa

Millions of Africans live and work around the globe, and for many of whom, sending money home to pay bills, settle business transactions, or just help friends and family out remains a crucial part of their lives. However, navigating this process can sometimes require a clear understanding of several important factors specific to a continent as large and diverse as Africa.

Below, we go over a few things you should know about sending money to the Mother Continent:

1. There Are Various Possible Receiving Methods

When sending money to Africa, unlike to Europe or North America (where bank deposits are the name of the game), it's essential to keep in mind that there are various popular receiving methods available. These include:

• Bank Deposits: This is when a SWIFT transfer is credited to the bank account of someone in Africa.
• Mobile Money Services: These are specialised mobile apps that allow the handling of everyday finances like payments, transfers, and loans. In many ways, mobile wallets replace the need for traditional bank accounts in some parts of Africa.
• Cash Pick-Ups: This is when physical cash is retrieved from an agent location.
• Debit Card Deposits: This is when a fixed amount is deposited directly onto the bank account associated with a given debit card.

Each option has its advantages and limitations, so choosing the right one depends on the specific needs and preferences of both you, as the sender, and your recipient. For example, in some parts of Africa, banks are more prevalent, while in others, cash or mobile wallets are. These are things you'll need to consider and agree with your beneficiary before making a money transfer to Africa.

2. Fees & Exchange Rates Are Normally Atrocious

One of the major challenges when sending money to Africa is the often high fees and unfavourable exchange rates that go along with using your bank or even a traditional remittance provider. This impacts not only you as the sender, who pays more in fees, but also potentially your recipient, who might receive less than they ought to on the other end.

To avoid this and get the biggest bang for your buck, it's crucial to compare different providers and choose the one that offers competitive rates and lower fees.

3. Regulations & Differences in Financial Systems

Depending on the country, sending money to Africa can sometimes involve navigating a jungle of complex requirements. Various countries have specific rules and restrictions that can impact the transfer process, so it's vital to stay informed and work with providers with experience handling transfers to African destinations to ensure a smooth and compliant transaction. Fortunately, all providers you find on Monito will guide you through the process and let you know exactly what is required of you and your recipient in order to complete the transfer.

Tips For Sending Money to Africa

In light of the above, to make your money transfer to Africa as seamless and cost-effective as possible, we recommend these five simple tips:

1. Always Research Providers in Advance: Take the time to research and compare the various money transfer providers, looking specifically for those that offer competitive rates, low fees, and reliable service. Use our comparison engine below to get started.
2. Choose the Right Receiving Method: Select the receiving method that best suits the needs of the recipient, whether it's a bank account, mobile money, or a cash pickup location. It's always best to confirm these details with your recipient in advance.
3. Understand What Fees You'll Pay: Try to get a good overview of the fees associated with your transfer, including both your fees as the sender and your recipient's. This transparency will help you make an informed decision. Again, using our comparison engine at Monito, you can gain a full overview of exactly what fees and exchange rates will impact your transfer with various providers.
4. Monitor the Exchange Rates: Keep an eye on exchange rates and, if it makes sense to do so, try to time your transfer to take advantage of a stronger exchange rate. On Monito, you can set up exchange rate alerts and receive an email whenever the rate moves in your favour.
5. Stay Informed About the Regulations: Ensure you're aware of any regulations or documentation requirements in both your home country and the recipient's country. Compliance is essential to avoid delays or complications. Luckily, as we mentioned above, all providers you find on Monito will help you along with any necessary process.

Get started right away by comparing providers on Monito in real time!