The remittance market in South Africa is growing rapidly. Ever since COVID-19, people have relied increasingly on digital remittance platforms to send money to loved ones, both locally and across borders.
This growth trend is set to continue over the coming years, driven partly by the increasing ubiquity of smartphones and an increase in online money transfer platforms.
In fact, remittances are growing so rapidly that governments worldwide are looking to them as serious contributors to their economies – South Africa included.
Let’s take a look at why remittances are so important for the economy.
Financial Support Amidst High Unemployment
With South Africa suffering high unemployment, many people are forced to rely on others for financial support. As of the third quarter of 2023, the latest official unemployment is 31.9%. That’s almost a third of the working population. This doesn’t factor in those who are not included in that category, such as the elderly and children.
Remittances provide a crucial means of supporting those loved ones who cannot support themselves, thereby contributing to an improved standard of living for many and stimulating the economy by providing more people with cash to spend on goods and services.
This alleviates poverty in the country, allowing loved ones to find a way out of their situation and live more fulfilling lives.
Stimulating Local Economies
When money is sent home from abroad, it provides a crucial source of foreign exchange and external income for the local economy.
In 2022, remittances received in South Africa reached more than $872-million, which is about R16.4-billion. It is anticipated that this number will continue to rise in the upcoming years. All of this money is either flowing into the country from external sources or flowing locally from metropolitan areas into rural areas where loved ones live and require support.
Therefore, this funding serves to support and stimulate the South African economy at large, as well as local community economies. It provides individuals with cash to participate in the economy, thereby leading to an increase in employment opportunities as demand for goods and services goes up.
At OTT Mobile, our cash vouchers provide a perfect way to send money to your loved ones in a safe and secure way. Buy a cash voucher now and find out for yourself just how easy it is, or contact us for more information.
FAQs and Answers
1. What are remittances and why are they important?
Remittances are funds sent by individuals to support family or friends, either locally or internationally. They play a significant role in providing financial support to loved ones, especially in regions with high unemployment rates.
2. How does remittance contribute to the economy?
Remittance stimulates local economies by injecting cash into communities. This helps improve people’s living standards and creates demand for goods and services, thereby increasing employment opportunities.
3. What role do digital remittance platforms play in today’s economy?
Digital remittance platforms, such as OTT Mobile’s cash vouchers, allow people to send money securely and quickly, contributing to the growing remittance market and providing a vital source of support during difficult economic times.
4. How does OTT Mobile help with remittance?
OTT Mobile offers secure cash vouchers that can be purchased at over 200,000 outlets, allowing individuals to send money quickly and safely to their loved ones.
5. How can I buy OTT Vouchers?
OTT Vouchers can be purchased at participating retail outlets or online. They provide a secure and easy way to send money digitally without the need for a bank account.
6. Can I use OTT Vouchers for international remittances?
Yes, OTT Vouchers can be used to send money to family and friends both locally and across borders, making them an excellent choice for international remittance.
7. What are the benefits of using OTT Mobile’s vouchers for remittance?
OTT Mobile’s vouchers offer a safe, reliable, and easy way to send money. They can be redeemed instantly, allowing recipients to use the funds for various online transactions.
8. How do remittances impact unemployment rates in South Africa?
Remittances provide financial support to individuals who may be unemployed, helping to alleviate poverty and improve their living standards. This boosts consumer spending, which can lead to more job opportunities.