In 2023, Ghana emerged as the second-largest recipient of remittances in Sub-Saharan Africa, marking a significant milestone in its economic landscape.
According to the World Bank’s 2024 Migration and Development Report, Ghana received an estimated $4.6 billion in remittances, underscoring the vital role these funds play in the country’s financial stability.
Leading the region, Nigeria topped the list with $19.5 billion in remittances, followed by Ghana. Despite a slight overall decrease in remittance flows across Sub-Saharan Africa, Ghana’s robust position highlights the resilience and importance of remittances in supporting household incomes and national economies.
The report further detailed that Kenya secured third place with $4.2 billion, Zimbabwe fourth with $3.1 billion, and Senegal with $2.9 billion in remittances. The Democratic Republic of Congo received $1.4 billion, Uganda $1.3 billion, Mali $1.2 billion, and both Sudan and South Africa $1.0 billion each.
Remittances to Sub-Saharan Africa exceeded Foreign Direct Investment (FDI) inflows by nearly 1.5 times in 2023, showcasing their substantial impact on regional economies. FDI to the region totaled $38.6 billion, driven primarily by new projects in Kenya and Nigeria, as reported by the United Nations Conference on Trade and Development (UNCTAD).
The World Bank emphasized that remittances have become the primary source of foreign exchange earnings in several countries. For instance, in Kenya, remittances surpassed revenues from key exports like tourism, tea, coffee, and horticulture. Countries such as The Gambia, Lesotho, Comoros, Liberia, and Cabo Verde rely heavily on remittances, contributing over one-fifth of their GDP in some cases.
Despite challenges and fluctuations in global economic conditions, regional growth in remittances in 2023 showed significant increases in countries like 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). However, remittances to Nigeria, which constitute about 35 percent of total inflows to the region, declined by 2.9 percent to $19.5 billion.
Looking ahead, projections suggest a recovery in remittance growth for Sub-Saharan Africa, with expectations of a slight increase from a negative growth rate of -0.3 percent in 2023 to +1.5 percent in 2024. This anticipated rebound reflects ongoing resilience and the enduring role of remittances in supporting regional economies amid global uncertainties.