Ghana ranks 2nd in African remittance flows with $4.6bn in 2023
The World Bank in its 2024 Migration Development Report has Ghana ranked second in remittance flows to Africa in 2023, recording $4.6 billion in remittance receipts.
Nigeria topped the list with $19.5 billion. Kenya, Zimbabwe, and Senegal followed with $4.2 billion, $3.1 billion, and $2.9 billion, respectively.
The report highlighted that remittance flows to Sub-Saharan Africa were nearly 1.5 times the size of Foreign Direct Inflows (FDI) in 2023, which reached $38.6 billion.
This increase in FDI was driven mainly by greenfield project announcements in Kenya and Nigeria.
Remittances have become the most significant source of foreign exchange for several countries. In Kenya, for example, remittances exceed the country’s major exports, including tourism, tea, coffee, and horticulture.
The report also noted that some countries are highly dependent on remittances as a proportion of GDP. The Gambia, Lesotho, and Comoros see remittances contribute more than a fifth of their GDP.
Regional growth in remittances in 2023 was primarily driven by significant increases in Uganda (15% to $1.4 billion), Rwanda (9.3% to $0.5 billion), Kenya (2.6% to $4.2 billion), and Tanzania (4% to $0.7 billion).
However, remittances to Nigeria, which accounts for about 35% of total remittance inflows to the region, decreased by 2.9% to $19.5 billion.
