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WorldRemit calls for unconditional blockage of Western Union’s move to acquire MoneyGram

On Wednesday, news leaked that Western Union is in talks to acquire its smaller rival MoneyGram, a move that WorldRemit believe would affect Africa, considering its profound consequences for competition in the remittance market.

WorldRemit’s founder and CEO, Ismail Ahmed, said: “Western Union is reported to be in talks to acquire its largest competitor MoneyGram. If the deal is approved, it would create a monstrous monopoly that would impact the livelihoods of millions around the world.

Separately, these two companies operate what former UN secretary general Kofi Annan calls a remittance “Super Racket”. According to the Africa Progress Panel, the two companies are engaged in anti-competitive practices to maintain their market position. Their extortionate fees amount to an annual ‘super-tax’ costing Africa alone an estimated $1.8 billion every year. In many corridors, the merger would eliminate the limited competition that currently exists.

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Online services such as WorldRemit are drawing away their customers with greater convenience and honest pricing, but more than 95% of remittances are still sent offline, primarily through these two companies. We call on regulators to block this deal unconditionally – in the interests of migrants and expats around the world who rely on international money transfer services to support friends and family in their homelands.”

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