Nature and characteristics of informal migrant remittance transfer channels: empirical study of remittances from South Africa to Zimbabwe

Abstract

Migrants often make remittances to their own country without adhering to the formal financial system of the host coun-try. The study reported in this article attempted to describe the prevalence of sending informal remittances from South Africa to Zimbabwe by bus or taxi. Using a questionnaire, 206 taxi and bus drivers were surveyed in Johannesburg Central Business District to determine reasons for migrants choosing them and not formal channels when sending re-mittances. It was found that speed of delivery, good customer care and convenience determine a migrant’s choice of remittance channel. Linked to that is the fact that formal money transfer operators require documentation which is usually difficult for senders to make available. Recommendations are provided to policy-makers for capturing the in-formal remittances which come through buses and taxis. This will help development planners to allocate foreign remit-tances efficiently.