Diaspora refers to a large group or community of migrants or immigrant workers who have moved to various parts of the world with similar heritage or homeland.
According to the South African National Bureau of Statistics, about 3 million of the 60 million people living in South Africa are foreign workers. Considering that the proportion of illegal immigrants is high, the number of foreign workers is expected to be higher. They provide labor to South Africa and use the earnings they earn not only to live in the country, but also to send money back to their home countries to their families. However, like UNBANKED, they also face financial exclusion, so the rate of cash use is high, and they have no choice but to remit money while taking risks such as loss of cash, fraud and paying high fees.
According to World Bank data, the average remittance sent by South African immigrants in 2020 was $1,351, which is relatively high compared to other African countries such as Nigeria, where the average remittance amount was $325 in the same year. One reason for the higher average remittance in South Africa is that the income of South African immigrants is relatively higher than that of immigrants from other African countries. When sending remittances within the country, 50% of people use banks, while 25-30% use informal channels to transfer cash.
For remittances sent outside the country, UNBANKED and DIASPORA populations cannot engage in normal financial activities, so the proportion of cash transfers through informal channels is as high as 60%. However, the high fees exceeding 30% incurred during this process cause significant economic losses to these populations, depriving them of opportunities to escape poverty and achieve their dreams.
Advanced Project also serves a public purpose by eradicating unjustified fees and providing easy-to-use secure financial services that give the unbanked the opportunity to move beyond a life of complacency and live a more dignified life where they can plan and realize their personal dreams.
