Title: Remittances from African migrants on the rise but little used for development
Introduction :
Remittances sent by African migrants have increased significantly in recent years, even exceeding the amount of official development assistance and foreign direct investment. However, despite this financial windfall, these funds are under-exploited and contribute little to development and wealth creation on the continent. In this article, we will explore the figures, the recipient countries and the challenges related to the anarchic management of these remittances.
Record shipments from African migrants:
According to a study carried out by the Ecofin Pro platform, funds sent by African migrants reached a record amount of 97 billion US dollars in 2022, compared to 84 billion in 2020. This constant increase is explained by demographic growth, migration towards better economic prospects and increased use of formal channels for money transfers.
Main recipients of remittances:
Egypt ranks as the top recipient of remittances from the African diaspora, having received $28.3 billion in 2022, or nearly 29% of all remittances to the continent. Nigeria follows closely with $20.1 billion, accounting for almost 21% of remittances. Other countries such as Morocco, Ghana and Kenya also record significant amounts of remittances.
Limited impact on development:
Despite these impressive figures, remittances from African migrants still contribute marginally to financing development and wealth creation. According to experts, these funds represent a significant part of the GDP of some countries, but their effective use is hampered by anarchic management. The high costs of formal channels, cash transfers and the lack of reliable data on actual shipment volumes are all challenges to overcome.
Optimize the use of remittances:
It is essential to put in place effective policies and mechanisms to direct remittances towards productive investments, entrepreneurship and high value-added development projects. This requires collaboration between governments, financial institutions and diaspora actors to facilitate access to financial services, reduce transfer costs and provide an environment conducive to investment.
Conclusion :
Remittances from African migrants have reached record levels, but their potential as an engine of development remains largely untapped. It is crucial to promote effective management of these funds, encouraging their use in projects that truly contribute to economic growth and the well-being of communities.. By working together, we can transform these remittances into a real lever for sustainable development in Africa.