Diaspora remittances, sent by individuals working abroad, often exceed Foreign Direct Investment (FDI) and Official Development Assistance (ODA), providing crucial support for families and economies.
Many Africans migrate abroad in search of better economic opportunities, higher incomes, and greater political stability.
Africa’s diaspora remittances in figures
In 2023, Africa received $100 billion in remittances, which accounted for nearly 6% of the continent’s Gross Domestic Product (GDP) according to the World Bank.
This amount surpassed both ODA ($42 billion) and FDI ($48 billion), underlining the importance of remittances in bolstering the economic foundation of low- and middle-income countries across the continent.
Engaging the diaspora is essential, as these remittances are often driven by the strong connections migrants maintain with their countries of origin.
Despite the significant role diaspora remittances play in many African economies, several challenges contribute to low remittance flows.
Financial barriers and regulatory issues are major obstacles, which often reduce the amount of money sent back to families in African nations.
This reduction can be indicative of economic struggles, as high money transfer costs and inefficient systems discourage both migrants and potential investors.
While Egypt, Nigeria, Morocco, Kenya, and Ghana lead in diaspora remittances, other African nations struggle with lower inflows due to economic, political, and infrastructural challenges. High transaction costs, unstable financial systems, and limited access to formal services further hinder remittances, highlighting the need for reforms to boost economic development.
According to the World Bank, the following countries recorded the lowest remittances during the period in review.
| Rank | Country | Amount ($) |
|---|---|---|
|
1 |
Central African Republic |
0 |
|
2 |
Chad |
0 |
|
3 |
Equatorial Guinea |
0 |
|
4 |
Eritrea |
0 |
|
5 |
Libya |
0 |
|
6 |
Seychelles |
11 million |
|
7 |
Angola |
12 million |
|
8 |
Gabon |
18 million |
|
9 |
Namibia |
43 million |
|
10 |
Congo, Rep. |
44 million |
Remittance amounts in these countries vary based on migration patterns, diaspora size, and financial infrastructure, which can be improved to further boost remittance flows
Countries like the Central African Republic, Chad, Equatorial Guinea, Eritrea, and Libya reported zero remittance flows in 2024, mainly due to political instability, economic isolation, and smaller diaspora populations.
In contrast, nations like Seychelles ($11 million), Angola ($12 million), Gabon ($18 million), Namibia ($43 million), and Congo Rep. ($44 million) have more significant remittance inflows.
Although these remittances reflected the lowest in Africa, these countries benefit from a more established diaspora community than their counterparts in the ranking.
