The article on the news of African migrant remittances is a fascinating study that highlights the importance of these money flows in the economy of the continent. According to the study carried out by the Ecofin pro platform, funds sent by African migrants reached a record amount of 97 billion US dollars in 2022, thus exceeding the figures of previous years.
These remittances represent an amount greater than the official development assistance (ODA) and foreign direct investment (FDI) received by many African countries. However, the study highlights that despite their importance, these funds only contribute marginally to financing development and wealth creation on the continent.
The study also reveals that some countries benefit more from these remittances than others. Egypt tops the list as the largest recipient country, having received $28.3 billion from its diaspora in 2022. Nigeria comes in second with $20.1 billion, followed by Morocco with 11 billions of dollars.
However, the study also highlights that migrant remittances to Africa are often underestimated due to the use of informal channels and the high costs of remittances through formal channels. The costs of these transfers can reach up to 35% in certain corridors, which limits their real impact on the African economy.
It is therefore essential to find solutions to reduce the costs of these transfers and put in place more efficient mechanisms for informal channels. This would maximize the impact of remittances from African migrants, promoting development financing and wealth creation on the continent.
In conclusion, this study highlights the importance of remittances from African migrants in the continent’s economy. Despite their high amount, it is crucial to find ways to maximize their real impact by reducing transfer costs and promoting their use in productive investments. This will help boost Africa’s economic and social development and create opportunities for its people.