... and the remittance industry
Dr Kofi Konadu Apraku, Ghana’s Minister for Regional Co-operation and NEPAD is to deliver the keynote address at a seminar organized by UK- based Infobank Investment and Research Limited in conjunction with M-Systems (West Africa) and E-Money Remittance Limited. First Atlantic Merchant Bank is one of the main sponsors of the event.

Officials from the West African Monetary Institute (WAMI), First Atlantic Merchant Bank, E-Money Remittance Limited, Bank of Ghana, Money Systems (West Africa) and National Investment Bank will be making presentations at the one-day event to be held at the M-Plaza Hotel in Accra on November 28.

The aim of the seminar is to bring together business leaders, bankers, analysts, dealers, remittance companies and other financial market experts to share ideas on the Ghanaian financial system and the inward remittance business, which is one of the fastest growing businesses in Africa.

“This is a very good opportunity for all stakeholders in the remittance industry to come out with ideas that will help shape the industry. The global remittance industry is centuries old, yet, the general impression is that until now, policy makers, development agencies, economists and researchers have shown little interest in the role of remittances in economic development, arguing that remittances were used for consumption, and not for productive investment”, Bernard Otabil, Organising Committee President of the seminar said.

In an interview with the organizing committee, Otabil expressed his enthusiasm about the event stressing the need for a more formal approach to the remittance industry.

“The remittance industry is really an important sector to both governments and individuals. While researching on the topic, we realized that for a country like Ghana, in the early 80s, inward remittances played a major part in getting the economy out of its doldrums in which it was. But what do we hear? All many people believe today is that it was indeed the efficiency of the IMF and World Bank supported structural adjustment programs that got the economy on track. What I am saying here is that inward remittances played a major part too and should be stressed”, he said.

According to Otabil, there are a lot of regulatory issues that many of those involved in the remittance industry do not know and that could prove costly some day if not addressed today.

“We spoke to some remittance companies and realized that there was indeed some level of education needed. I am eager to find out more at this event myself as we expect delegates to share their experiences with all of us”, he said. Otabil is of the view that by embracing technology, the industry can stand the test of time and was therefore bullish about the prospects of the M-Systems technology.

“The most important thing about this industry to a regulator is record-keeping. But the amount of paper work involved is often too much for the small money transfer company who may be operating as a licensed agent for a bigger agent. This creates a problem for money remittance companies. But M-Systems have developed this technology, which not only provides an easy interface between banks and money transfer companies but also generates reports and provides other tracking features. This is a very good system that is doing well on the market today”, he said.

With the growing business of money transfer with its importance to national economies, many experts are of the view that developing countries must do a lot more to strengthen the industry.

This seminar is a good step forward and as the organizers hope to make it an annual event in the future with workshops running for about three days, this informal sector that contributes so much to the formal sector would get the necessary attention that it needs.