Accra, Ghana – Ghana has emerged as the second-largest recipient of remittance flows in Sub-Saharan Africa for 2023, according to the World Bank’s latest Migration Development Report. This is a significant development, highlighting the vital role these financial transfers play in the region’s economy.
The report reveals that Ghana received a staggering $4.6 billion in remittances in 2023, placing it behind only Nigeria, the continental leader, which attracted $19.5 billion. Kenya followed closely behind Ghana at $4.2 billion, with Zimbabwe and Senegal rounding out the top five with $3.1 billion and $2.9 billion, respectively.
This surge in remittances surpasses foreign direct investment (FDI) inflows into Sub-Saharan Africa by a significant margin. The report states that FDI reached $38.6 billion in 2023, primarily driven by new projects in Kenya and Nigeria. However, remittance flows proved to be nearly 1.5 times larger and demonstrably more stable.
The World Bank emphasizes the crucial role remittances now play in several African economies. In Kenya, for instance, remittance inflows surpass the combined value of the country’s key exports, including tourism and agricultural products like tea, coffee, and horticulture.
The report further identifies countries where remittances contribute a substantial portion to GDP. The Gambia, Lesotho, and Comoros stand out, with remittances exceeding one-fifth of their respective national economies. Liberia and Cabo Verde also show a significant dependence on these financial lifelines.
The report also highlights positive regional trends. Strong growth in remittances was observed in Uganda (up 15% to $1.4 billion), Rwanda (up 9.3% to $0.5 billion), Kenya (up 2.6% to $4.2 billion), and Tanzania (up 4% to $0.7 billion).
