Remittances from African migrants reached a record high in 2022, reaching US$97 billion, a significant increase compared to previous years. According to a study carried out by the Ecofin pro platform, these funds even exceed public development aid and foreign direct investments on the continent. However, despite their importance in terms of volume, these transfers contribute only marginally to development and wealth creation in Africa.
The study highlights that Egypt is the country that received the most funds from its diaspora in 2022, with an amount of $28.3 billion, representing 29% of all migratory remittances recorded on the continent. Nigeria comes second, with $20.1 billion, followed by Morocco, Ghana and Kenya.
However, despite these impressive figures, the report highlights that migrant remittances to Africa are often undervalued due to the use of informal channels for remittances, making it difficult to collect accurate data. Additionally, the high costs of formal channels may deter some migrants from using these official channels, leading to an increase in informal transfers.
These remittances are crucial for many countries in Africa, where they represent a significant share of gross domestic product (GDP). For example, in Gambia, migration remittances represent almost 29% of GDP, while in Lesotho this figure reaches 23%. However, to maximize their impact, it is essential to put in place policies and infrastructure that promote the use of formal channels and reduce transfer costs.
In conclusion, remittances from African migrants represent an essential financial flow for many countries on the continent. However, their real impact on economic development remains limited due to challenges such as the use of informal channels and high costs. To optimize these transfers, it is necessary to put in place measures favoring the use of formal channels and to facilitate transfers at lower cost. This would enable migrant funds to contribute more to wealth creation and sustainable development in Africa.