Remittances to Ghana estimated at $2b in 2015

RemittancesDespite the fall in oil prices and slow economic recovery in high income countries, an estimated $2 billion of remittances were sent to Ghana in 2015, according to the World Bank.

The figure isn’t significantly different from the amount of remittances sent in 2010. Ghanaians living abroad sent remittances or private unrequited transfers (net) in the year 2010 to the tune of $2.12 billion, the World Bank Ghana Country office told

Generally, remittance flows to the sub-Saharan Africa region have been affected by slow economic recovery in high-income countries and the adverse impact of the commodity price decline on regional remittance-source countries such as South Africa and Nigeria.

The Bank however, indicates that an estimated one per cent rise in remittances to sub-Saharan Africa in 2015 represents some recovery from the 0.2 per cent rise in 2014.

The Bank also notes that remittances to Nigeria, which accounts for around two-thirds of total remittance inflows to the region, are estimated to have declined by 0.8 per cent to $20.7 billion, and remittances to South Africa are estimated to have fallen by 5.2 per cent to $0.9 billion.

“Regional growth in remittances in 2015 was largely driven by strong remittance growth in Kenya (8.3 per cent to $1.6 billion) and Uganda (21.1 per cent to $1.1 billion). Remittance flows to the region are projected to rise by 3.4 and 3.7 per cent in 2016 and 2017, respectively,” it says.

Inward remittances have become very important sources of financing for most African countries, but the costs of remitting funds have been increasing. The African Union therefore established the Africa Institute of Remittances to among others, provide technical assistance to government institutions (central banks, Ministries, financial and non-financial institutions) on establishing and operating the necessary regulatory frameworks; carry out required training and capacity building programmes of relevant institutions and organisations (e.g. national statistical services departments); study remittances flows within Africa (including North Africa); and conduct policy research and dialogue and sharing information on how remittances can better contribute to the development of African countries.

By Emmanuel K. Dogbevi
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