UK-based firm seeks low remittance costs to drive growth

London-based online money transfer service WorldRemit has urged European and African leaders to focus on reducing the cost of remittances ahead of the Valetta summit on migration.

The summit, which started Wednesday in Malta, is expected to run for two days with a focus on the migrant crisis in Europe. It will look at ways of implementing development and poverty reduction strategies.

According to a leaked action plan document by the European Council leaders attending the meeting, they will pledge to ‘reduce the transaction costs of migrant remittances to less than three per cent by 2030 and eliminate remittance corridors with costs higher than five per cent’.

WorldRemit’s founder and CEO, Somalia-born businessman Ismail Ahmed, said reducing the cost of remittances was a critical goal for both migrants and their dependents.

“Remittances ought to be highlighted as an increasingly important driver of development,” he said.