A few years ago, there was no single country on the African continent where one could send/receive money online via Paypal. Not one. Then there was South Africa. A few countries were added, as most were later covered. Even now, all the African countries can only send - they cannot receive money via Paypal.
Any enquiry to Paypal on these issues always come with the same answer:
PayPal is constantly working to expand and improve our services for our customers. We hope to be expanding our availability to include more countries, however, due to the complexities of global expansion, we cannot give a timetable for this.
Just recently, Paypal announced that some more countries can now withdraw their Paypal funds to a Visa or Mastercard credit, debit or prepaid card. Still, no African country is among the 26 that have these added functionality.
It is indeed interesting to note that Paypal is not available to residents of Nigeria which is Africa’s 2nd largest economy after South Africa and also the most populous nation in Africa. The potential is there. Indeed, many banks in Nigeria now issue international Mastercard credit cards and local debit cards are also widely used at ATMs, on the Internet and at Point-Of-Sale (POS) terminals.
I am speculating on some reasons why residents of some African countries cannot use Paypal while others have just limited use:
1. Banking system: the banking system in some African countries are not entirely electronic though many countries are fast developing in this area. Countries like South Africa, Egypt, Nigeria have gone far. Their banking system are quite developed.
2. Governments policy about the influx or rather out flux of foreign currency like Euro, British Pounds sterling and the US Dollar. Fear of the economic concept “Capital Flight” has made many African governments maintain a strict control on the outflow of foreign exchange from their respective countries.
3. High level of potential fraud: This would relate more to Nigeria, Egypt, Ghana. The incidence of fraud reported from these countries are high indeed and many online merchants and fraud-screening databases have marked these countries red. Legit businesses are thus negatively affected. Very few online merchants or mail forwarding agencies would ship to these countries.
What do you think?
15 responses so far ↓
1 Ifeoluwa // Sep 30, 2007 at 1:39 pm
This is seriously affecting most of us trying to earn legitimate income on the internet. I wish paypal reconsider its stance on this issue, though fraud may be their fear but at least some security features are put in place.
And for us finding it difficult to do business(legal) online, which other means is best suitable? As most of this affiliate company ask for our paypal account…..
2 Karen Lotter // Oct 1, 2007 at 5:05 am
I live in South Africa and the PayPal issue is huge for me as I do work on the net and have to have money paid into friends’ accounts in the USA. They keep it for me for when I next travel there.
It is a crazy set-up because small businesses cannot operate on the internet. Our local Chamber of Commerce in Durban is investigating the matter at government level because I think it has to do with exchange control.
3 Steven Wong // Oct 1, 2007 at 6:11 am
Don’t worry, the day it will come when all countries users can be able to withdraw fund from their paypal account.
Uses from Malaysia & 25 other Asia Pacific countries have been waited so long.
Check out my blog post about what are the other 25 countries as ready to withdraw their fund into local cards.
4 Dar Millionaire // Oct 2, 2007 at 9:39 am
Yes PayPal may not be available for receipts in Africa, but other options are. You can use services like MoneyBookers.com and AlertPay.com
5 Oluniyi David Ajao // Oct 2, 2007 at 11:25 am
I am aware. I use both Alertpay and Moneybookers almost daily.
I explored this issue more comprehensively here: e-commerce in Africa
6 Clement // Oct 8, 2007 at 8:51 am
My simple opinion is that if paypal can afford to let citizens of some African countries to send money then they should also give the ability to receive funds as well. It should be a dual service - send and receive at the same time.
7 Wale // Oct 13, 2007 at 6:59 pm
It is dishearten to see this kind discrimination if i may say happening. Well one day Paypal will come to realize the large opportunity in Africa. But I hope it will not be too late for it to realize.
8 Nic // Dec 10, 2007 at 2:27 pm
Here is a solution to the problem for South Africans and citizens of the excluded country’s to receive money from the 60 million PayPal members.Accept credit cards and PayPal from your website in 5 minutes http://www.online-e-commerce.co.za offer the solution to enable your website to accept payments,you even receive a ATM debit card so the money from the payment company’s that does the transaction on your behalf at a small fee transfer it back into your debit card.
9 olowe olaolu // Jan 8, 2008 at 7:13 pm
I wonder why Nigeria the most populous black nation won’t be allowed into paypal system. We all in Nigeria are not fraudstars as they think and morever the most advance form of cybercrimes is coming from this so called developed country.I pray paypal would reason to these and change its decision before its to late becausea Africa is emaging as world economic power.It might sound funny, but thats the through
10 chris omondi // Feb 27, 2008 at 10:26 am
CAN I RECEIVE MONEY BY PAYPAL IN KENYA????
THANKS.
CHRIS.
11 Oluniyi David Ajao // Apr 3, 2008 at 10:02 am
Paypal users in Kenya are currently on the Send Only list meaning they cannot receive payment via Paypal.
12 Dar Millionaire // Apr 5, 2008 at 9:50 am
I think it’s opportune to highlight an example here that scammers are not found in Nigeria only.
http://news.bbc.co.uk/1/hi/business/7296315.stm
So PayPal if you are reading this take not, and lift the glass ban.
13 Leon // Apr 9, 2008 at 8:51 am
Be carefull not to purchase any information on how to get Paypal to work in your country. Paypal is known to freeze accounts, and take the money. I bought the information at various sources, and have published it here (http://paypal-in-southafrica.blogspot.com/) for you for free, as well why it might not work. Since it is public knowledge on various forums in anycase.
I don’t think that government policy is necessarily the cause for Paypal not enterring South Africa, since we have other similar services, like SETCOM. Explain that.
14 Maxwell // May 24, 2008 at 7:59 am
I think this is partly DISCRIMINATION. Fraud and corruption are also rampant in The West. I pray for the day when a collaboration of banks, IT specialists, scholars and governments in the DEVELOPING WORLD create their own alternative to PayPal and shut them out once and for good.
Luckily, I do my PayPal stuff thru my Canadian bank account.
- Max (aka MaxTheITpro of http://MaxTheITpro.BlogSpot.com & http://GoAfricaGo.BlogSpot.com )
15 Nairobian Perspective // Jun 17, 2008 at 10:16 am
We need to dirrect Paypal to our plight , i have a post on it and i have made a link to your blog on it!
http://siku-moja.blogspot.com/2008/06/is-paypal-effective-in-africa.html
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