MONEY AND SURVIVAL
Follow the Money: The Cost of Sending Money Home
Article by Rodgers Mangwela | KASONDE24
Imagine working thousands of kilometres away from home, sacrificing time with your children and enduring the pressures of life in a foreign country, only to discover that a portion of your hard-earned money disappears before it reaches the people you love.
For millions of migrant workers, this is not an imaginary problem. It is a financial reality that raises an important question: when someone sends money home, how much actually reaches their family, and who profits along the way?
In an episode titled Follow the Money: The Cost of Sending Money Home, the BBC World Service's Business Daily examines the journey of money sent by a housekeeper working in London to her family in the Philippines. The programme explores the fees charged by money-transfer companies and questions why sending financial support across borders remains expensive, even as digital technology makes communication and payments easier.
The issue reaches far beyond the Philippines. Across Africa, including Zambia, money sent home by relatives working abroad helps families pay for food, education, healthcare, accommodation and other essential needs.
For households in Kabwe and communities such as Katondo, the story presents an important lesson about financial survival: earning money is one challenge, but ensuring that every possible kwacha reaches the family is another.
Following the Money: A Global Business Worth Billions
According to the BBC programme, international money transfers, commonly known as remittances, represent a global business worth hundreds of billions of dollars annually.
The programme cites World Bank estimates that migrants sent approximately $905 billion across international borders in 2024, with around $685 billion going to low- and middle-income countries.
These figures reveal the enormous importance of people who leave their home countries in search of employment and better opportunities. Their earnings do more than support individual households; they also contribute to the economic activity of the communities and countries receiving the money.
Behind every transfer, however, is a human story.
A mother working abroad may be sending money for her child's school fees. A son employed in another country may be supporting elderly parents. A husband working far from home may be helping his family afford rent and groceries.
For these families, a money transfer is not simply a financial transaction. It is an expression of responsibility, love and hope.
Yet the BBC's investigation draws attention to the businesses that facilitate these transactions and the charges that reduce the amount ultimately received by families.
The central question is not whether money-transfer companies should charge for their services. It is whether the cost is reasonable, transparent and affordable for the people who depend on these payments.
What Does This Mean for Africa?
Africa has a particularly important stake in the debate about the cost of sending money home.
Many African families depend on financial assistance from relatives working in other countries. These transfers can help households survive difficult economic periods, finance education and meet medical expenses.
However, transfer fees and exchange-rate margins can reduce the value of the money received.
Consider a worker sending $200 home. If the combined cost of the transfer amounts to five per cent, the equivalent of $10 is lost to transaction costs. If the family depends on that payment for food, transport or school requirements, the difference matters.
The World Bank reported in July 2026 that the global average cost of sending remittances remained around six per cent, while digital transfers averaged approximately four per cent. Sub-Saharan Africa continued to face some of the highest regional remittance costs.
These figures demonstrate why affordable financial services matter to the continent's development.
Listen to Impelako Chance by Netbustar ft. Drimz
When sending money becomes cheaper, families can retain more of what their relatives have earned through hard work. Over time, those savings can contribute to better household financial stability.
For Africa, reducing remittance costs is therefore not merely a banking issue. It is part of the wider struggle to make economic opportunities work for ordinary people.
Zambia: Every Kwacha Has a Purpose
In Zambia, money sent home by relatives working abroad can provide vital support to families facing financial pressure.
A transfer may help a family in Lusaka pay rent, enable a household in the Copperbelt to meet medical expenses or allow parents in Kabwe to keep their children in school.
In some households, money from abroad may also support small businesses, agricultural activities and home improvements.
However, the cost of receiving this assistance deserves closer attention.
A national remittances study published by the International Organization for Migration examined the experiences of people sending money to Zambia. Its findings showed that transfer costs varied considerably, with some respondents reporting charges exceeding 10 per cent of the transaction value.
The study also highlighted concerns about limited competition and the costs associated with traditional money-transfer channels.
Although digital financial services have created new possibilities, consumers still need access to affordable, reliable and transparent options.
Zambian families should therefore look beyond the advertised transfer fee. Exchange rates, additional charges and the amount ultimately received can all affect the real cost of sending money.
Comparing reputable providers before making a transaction can help senders make better financial decisions.
Kabwe and Katondo: The Human Face of Remittances
In Kabwe, the importance of financial survival can be understood through the everyday needs of ordinary households.
Families must find money for mealie meal, cooking oil, electricity, transport, school materials, rent and medical care. When income is limited, even a relatively small unexpected expense can disrupt an entire household budget.
Imagine a parent working abroad who regularly sends money to support children back home. If transfer fees rise or exchange rates become less favourable, the family may receive less than expected.
That shortfall could mean postponing the purchase of school shoes, reducing the household food budget or delaying payment for an essential service.
For residents of Katondo and other communities in Kabwe, the wider lesson is that financial literacy matters regardless of where a household's income comes from.
Families receiving money from abroad can benefit from planning their spending, keeping records of transfers and discussing financial priorities with relatives who send support.
Where possible, households can also explore ways to turn a portion of remittances into longer-term opportunities, such as vocational training, small businesses or productive assets.
This does not mean every family receiving money should be expected to invest it. When people are struggling to meet basic needs, survival must come first.
Nevertheless, when circumstances permit, careful planning can help families move beyond repeatedly responding to emergencies.
Can Digital Technology Make Sending Money Cheaper?
Technology is changing the way people transfer money across borders.
Mobile financial services, online platforms and digital payment systems can offer alternatives to traditional cash-based transactions. In some cases, they provide faster services and lower costs.
However, digital technology is not an automatic solution.
Some users face limited internet access, difficulties opening accounts, concerns about fraud or uncertainty about which providers they can trust. Others may live in places where receiving money digitally is inconvenient.
The challenge for Zambia and the wider African region is to expand access while protecting consumers.
Governments, regulators and financial institutions can help by encouraging fair competition, improving payment infrastructure and ensuring that fees and exchange rates are clearly disclosed.
Financial education is equally important. People need to understand how to compare providers, recognise suspicious offers and verify that the intended recipient has received the correct amount.
The objective should be simple: make legitimate transfers safer, more accessible and more affordable.
What Zambia Can Learn From the BBC Investigation
The BBC's Follow the Money investigation offers several lessons for individuals, businesses and policymakers.
First, families should compare the total cost of sending money rather than choosing a provider based solely on convenience or advertising.
Second, financial institutions should communicate charges clearly so customers understand how much they are paying and how much their relatives will receive.
Third, policymakers should encourage competition and innovation without compromising consumer protection.
Finally, families and communities should recognise the economic contribution made by migrant workers. Their sacrifices deserve more than gratitude; they deserve financial systems that allow more of their earnings to reach the people they support.
For communities in Kabwe and Katondo, these lessons are particularly relevant in a world where household budgets are under pressure and every kwacha must be used carefully.
The Real Cost Is Measured in Human Needs
The cost of sending money home cannot be measured in transaction fees alone. It must also be understood through the lives affected by every deduction.
Behind every transfer is someone working long hours, missing family occasions or living far from home in the hope of creating a better future for loved ones.
When a portion of that money disappears through avoidable costs, the consequences may be felt around a family dinner table, in a classroom or in a household struggling to pay its bills.
The challenge facing Zambia and Africa is to ensure that financial systems serve the people who depend on them, rather than allowing unnecessary costs to weaken the support that families receive.
Ultimately, sending money home is about more than moving funds from one country to another. It is about moving opportunity, security and hope across borders.
And for a family in Kabwe or Katondo waiting for support from a loved one abroad, every kwacha that arrives can make a meaningful difference.
Published by KASONDE24
Comments
Post a Comment