Diaspora remittances are the most important source of funds for Africa. The importance of remittances in the African context is also seen to have provided a basis for increased economic growth and enhanced economic stability in some countries, as well as more diverse ways of financing development and public policies. Claim Your List Of 10 African Books To Read.
Remittance flows from the international community, however small their relative contributions may be, have played a significant role in the development of many countries.
There are several implications of remittances on economic growth. Firstly, remittances contribute to the savings that can be channeled into productive investments. Secondly, they boost the demand for goods and services in the country of origin because there is more money circulating within households in those countries. Thirdly, remittances can also promote financial inclusion for low-income families.
World Bank reports that the remittance inflow in Sub-saharan Africa in 2021 amounts to 6.2 percent to $45 billion, given the sizeable number of people from the region in different countries of the West.
In this article, we will look into African countries that get the most remittances from the diasporans.
Nigeria comes first on the list of an African country that receives a large inflow of remittances from diasporans. Nigeria, being the most populated country in Sub-saharan Africa, has a significantly large number of diasporans who reside mostly in the United States, the United Kingdom, and Canada.
Due to the number of their diasporans, there is a large inflow of remittances in the region, among other countries. According to a World Bank report in 2021, Nigeria’s remittances revamped to $19.2 billion, and it will continuously be the highest remittance-receiving country in the region.
Ghana is yet another populated country in Africa with about 3-4 million diasporans in Australia, Finland, Isreal, etc. These diasporans are, of course, engineers, academicians, doctors, and nurses who send remittances to their relatives at home.
Ghana has reported as the second African country with the highest inflows of remittances, with about $4.5 billion per annum. Undoubtedly, this inflow of remittances facilitated the state’s economic boom, making it a good business climate.
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Kenya is ranked the seven most populated African country and also the region with the highest inflow of remittances from the diasporans in most south Asian countries.
However, these diasporans are mostly those in the medical field. Considering the number of diasporan Kenyans, the remittance inflow in the country is estimated at 3.7 billion per annum.
This remittance inflow has helped the country’s economy to improve and aided in the circulation of money in the country.
Senegal receives close to $2.7 billion in remittances every year from the diasporans, making it the third in the list of African countries with the highest inflow of remittances.
These remittances from the Senegalese workers in countries of the West like France notably aided in infrastructural development since the 1980s when the government adopted a full diasporans engagement.
Zimbabwe is rated the 26th most populated African country and also the fourth highest remittances recipient country. Every year, about $2.0 billion is sent back home by the diasporans.
The remittances coupled with the FDI the diasporans make help to accelerate the economy of the country to date.
6. Democratic Republic Of Congo (DRC)
DRC takes the lead as the sixth remittance recipient country in the continent. Aside from its agricultural products, remittances play a major role in the country’s development to date.
DRC tops the list of the African countries with a significantly sizable number of engineers, doctors, and nurses that migrates to countries of the West in a quest for befitting jobs and pay. Its total remittances per annum are reported to amount close to 1.3 billion.
Uganda receives close to $1.1 billion in remittances from the diasporans, making it the seventh-highest remittances recipient country in Africa.
It’s estimated that over 2 million Ugandans live and work overseas, and 30% of them play a major role in developing the region, of which remittances and investments top the list.
Another remittances recipient country is Mali. About 4 million Malians live overseas, and these diasporans send about $1.1 billion in remittances to their home countries per year.
It’s no doubt that these remittances have helped elevate the country’s economy all through these years.
9. South Africa
South Africa also ranks on the list of African countries with the highest percentage of remittances from abroad.
It diasporans send about $900 million in remittances every year, which elevates the economy.
According to data provided by the World Bank, Tanzania is one of the largest recipients of remittances in Africa.
The majority of these funds come from the United States, followed by Europe and Asia, and the remittances amount to $409.1 million every year.
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