Officials move to ease money transfer across East Africa
ICT Cabinet Secretary Fred Matiang’i. PHOTO | FILE
What you need to know:
Through the One Area Network Agreement, partner states last year lowered roaming rates, the focus is now on mobile money transfer rates for ease of doing business.
The deal is likely to come through by close of 2015.
Officials in East Africa are working to ease money transfer across the region in a move to boost trade.
Low cross-border money transfer rates are set to be a reality as Kenya, Rwanda, Uganda and South Sudan formulate harmonised money transfer guidelines.
Through the One Area Network Agreement, ICT ministers from the four countries have arranged with finance ministers and central banks to draft a proposal that is currently under discussion by individual governments.
“Presidents Uhuru Kenyatta and his counterparts directed ICT ministers to ensure they have a definite position on the negotiations by the next Northern Corridor Summit. We have asked operators to negotiate an inter operator rate for the money transfer,” said ICT Cabinet Secretary Fred Matiang’i at a media briefing.
The deal is likely to come through by close of 2015. It will mean international remittances between M-pesa, Airtel, and Telkom Kenya through to MTN will possible for mobile money customers in Uganda, Rwanda and South Sudan.
Through the One Area Network Agreement, partner states last year lowered roaming rates, with the focus now being on mobile money transfer rates for ease of doing business.
“This is a bigger market; if we facilitate communication it will be better for business. Whatever stands in our way must be removed,” said Mr Matiang’i.
“We want you to be able to move money from your M-pesa account here to a relative in Kigali and vice versa or from Airtel Uganda to Safaricom in Nairobi.”
The latest data from Central Bank of Kenya (CBK) shows that Kenyans transacted Sh418 billion on phone in the past two months. The deal could be a loss to regional telecommunication firms such as Safaricom who are making money across the region through international money transfer deals.
Vodafone, which owns 40 per cent of Safaricom, signed a deal in April giving M-pesa customers access to seven African countries.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
