Proposed US tax raises alarm for African remittance startups
- A US bill proposes a 5% tax on remittances sent by non-citizens, affecting African fintech startups.
- The legislation requires money transfer operators to verify the immigration status of senders.
- In 2024, African nations received over $90 billion in remittance inflows, crucial for local economies.
The proposed tax on remittances could stifle innovation and growth in the African fintech sector, which has been thriving in recent years. This legislation may disproportionately affect vulnerable communities and undermine the economic stability of nations that rely on remittance inflows. It is crucial for stakeholders to advocate for a more equitable approach that supports both the needs of migrants and the economies of their home countries.
