The African Union has been commended for pushing for the reduction of rates during diaspora remittance.
Mr Abdirashid Duale, the chief executive officer of money transfer company Dahabshiil, said the AU recognised the significance of remittances in alleviating the lives of the poor in Africa.
"Personally, I have always called for reduction of the cost of transferring remittances and fostering competition in the remittances market," Mr Duale said.
Remittances from the diaspora was one of the key topics discussed during the 30th Ordinary Session of the Assembly of Heads of State and Government of the African Union in Addis Ababa, Ethiopia, that started on January 28.
"The total global volume of remittances transfers to developing countries......has important macroeconomic effects, by increasing the total purchasing power of receiving economies.." a statement by the Union said.
It was recommended that to encourage the transfer of remittances, adopting sound macroeconomic policies conducive for investment and growth are necessary.
Also, to strengthen collaboration with stakeholders such as the Africa Institute of Remittances to create incentive strategies and investment opportunities for remitters.
The summit also recognized the importance of making it easier for migrants and their families to access financial services, including by extending financial literacy training to expatriates and receivers, and also boost the use of technology, such as mobile money, for cross-border remittances.
Dahabshiil, which operates in 126 countries, has been vital in ensuring Africans in remote areas access money efficiently.
The company has already adopted the use of mobile technology, eDahab, in its operations.