• Saturday, June 15, 2024
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Diaspora Dollars: Top 10 Africa countries where migrants send their money

Dollar transfers from migrants living abroad to their home nations are diaspora remittances. They are essential in many African countries’ economies, providing a source of household income and contributing to economic progress.

According to the World Bank Migration and Development Brief “officially recorded remittance flows to low- and middle-income countries (LMICs) are estimated to grow by 1.4% to $656 billion in 2023 as economic activity in dollar remittance source countries is set to soften, limiting employment and wage gains for migrants”

Nigeria leads the Sub-Saharan Africa region, the report said “ Remittance flows to Sub-Saharan Africa reached $53 billion in 2022, a 6.1 percent increase from the previous year, following the strong growth of 16.3 percent in 2021. Dollar remittance flows to the region are projected to rise by 1.3 and 3.7 percent in 2023 and 2024, respectively”.

Egypt, Arab Republic
Egypt is the African country with the biggest diaspora remittance inflow, totaling $28.3 billion. The Egyptian diaspora makes a substantial contribution to the Egyptian economy. The Egyptian government has established policies to encourage remittances, such as initiatives to reduce the cost of sending money home.

Nigeria
Nigeria, which has a large and diversified diaspora all across the world, ranks second with $20.1 billion in remittances. Nigerians are well-represented in countries such as the United States, the United Kingdom, and Canada. These remittances assist in reducing poverty and support local businesses, making them a lifeline for many Nigerian families.

Morocco
Morocco is third on the list, gaining $11.2 billion in remittances from the diaspora. Moroccans residing abroad send large sums of money home to their relatives. The Moroccan government has actively pushed investment and savings mechanisms to stimulate remittances.

Ghana
Ghana benefits from its large diaspora in the United States, the United Kingdom, and Germany, with $4.7 billion in remittances. The Ghanaian government has launched initiatives to capitalise on the potential of remittances for economic development, particularly in education and healthcare.

Read also Africa’s powerhouses: 10 largest economies on the continent in 2023

Kenya

Kenya has a substantial diaspora, with $4.1 billion in remittances, primarily in the United States, the United Kingdom, and South Africa. These remittances provide a substantial contribution to Kenya’s economy through sponsoring a variety of projects, including small and medium-sized businesses.

Tunisia
Tunisia receives $3.1 billion in diaspora remittances, the majority of which comes from its expatriate community in France and Italy. The Tunisian government has put laws in place to encourage remittances and investment in the country.

Zimbabwe
Zimbabwe, like Tunisia, receives $3.1 billion in remittances from its diaspora, which is global in scope, with substantial communities in South Africa and the United Kingdom. These remittances are critical in helping families and improving living conditions throughout the country.

Senegal
Senegal receives $2.5 billion in remittances from its diaspora, which is mostly concentrated in France, the United States, and Italy. These grants help Senegal’s development through supporting local enterprises, education, and healthcare.

Algeria
Algeria receives financial assistance from its large diaspora abroad, which totals $1.8 billion in remittances. These remittances serve to develop the Algerian economy and sustain families back home.

Democratic Republic of the Congo
With $1.7 billion in remittances, the Democratic Republic of the Congo (DRC) closes out the top ten list. The DRC’s diaspora is important in supporting families and investing in local companies.

Regardless of their differences, the top ten countries are all benefiting from an increase in diaspora remittances. Remittances help to alleviate poverty, stimulate economic progress, and improve the lives of millions of Africans.