A new report by the World Bank reveals that Nigeria was the top recipient of remittances in sub-Saharan Africa in 2023, maintaining its position from the previous year.
In US dollar terms, Nigeria received $19.5bn in remittances, followed by Ghana ($4.7bn), Kenya ($4.2bn), and Zimbabwe ($2.1bn), according to data included in the 2023 Migration and Development report released by the World Bank on June 26.
The report pointed out that remittances have become the most important foreign exchange earner in most countries in sub-Saharan Africa.
“For example, for Kenya remittances are larger than the country’s key exports, including tourism, tea, coffee, and horticulture. Countries more dependent on receipts as a proportion of GDP include the Gambia, Lesotho, Comoros, Liberia, and Cabo Verde with remittances contributing more than a fifth of GDP in the first three countries,” it said.
The World Bank explained that remittance flows to sub-Saharan Africa were nearly 1.5 times the size of Foreign Direct Investment (FDI) flows in 2023 and were relatively more stable.
The report highlighted that regional growth in remittances in 2023 was largely driven by strong remittance growth in Uganda (15% to $1.4bn), Rwanda (9.3% to $0.5bn), Kenya (2.6% to $4.2bn), and Tanzania (4% to $0.7bn). However, remittances to Nigeria, which account for around 35% of total remittance inflows to the region, decreased by 2.9% to $19.5bn.
The report also revealed that sub-Saharan Africa remained the region with the highest remittance costs. Senders had to pay an average of 7.9% to send $200 to African countries during the fourth quarter of 2023, compared with 7.4% in the fourth quarter of 2022.
Costs varied substantially across the region, ranging from 2.1–4.0% in the lowest-cost corridors to 18–36% in the highest. Intraregional remittance costs are still very high, with sending $200 from Tanzania to neighbouring Kenya, Uganda, and Rwanda costing more than 33% in the fourth quarter of 2023, according to Joy News.
Source: Daily Mail GH
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