South African banking group Absa and New York Stock Exchange-listed Western Union - a world leader in global money transfer – will this month begin the rollout of the Western Union Money Transfer service in selected Absa branches, the companies said on Monday.

The service follows the rollout of a successful pilot at the Carlton Centre branch in Gauteng during September 2008.

The joint venture has been approved by the South African Reserve Bank and complies with all appropriate South African banking regulations.

"The integration of the Western Union Money Transfer services into our retail banking environment allows Absa to offer a new and much-needed cross-border service to our existing customers; while at the same time attracting a new customer segment", said Absa Group CE Steve Booysen.

The number of Absa locations offering the Western Union Money Transfer service in South Africa is expected to climb to over 200 during the next 12 months, making it easier for consumers around the globe to send and receive money internationally.

Diaspora remittances have, over the last decade, become very important because they not only play a key role in the life of individuals but also in developing economies.

According to the UN International Fund for Agricultural Development (IFAD) remittances in Africa alone are set to be approaching $40-billion per year, with 70 percent of flows into Africa coming through formal money transfer organisations.

"As more and more people seek employment outside of their country of birth in order to better their personal economic situations, money transfer as a means of sending money home represents a significant economic opportunity both for the families on the receiving side as well as the economies of the countries in which they live," said Christina Gold, Western Union CEO.

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