Ghana second in sub-Saharan Africa for remittances with $4.6billion in 2023 – World Bank

Ghana secured its position as the second-largest recipient of remittances in Sub-Saharan Africa for 2023, receiving approximately $4.6 billion, according to the latest World Bank Migration and Development Report for 2024.

Leading the region, Nigeria received an estimated $19.5 billion in remittances, while Ghana followed with $4.6 billion. Despite an overall decline in remittance flows to the region, Ghana's substantial inflow underscores the critical role of remittances in its economy.

Kenya ranked third with an estimated $4.2 billion, Zimbabwe fourth with $3.1 billion, and Senegal fifth with $2.9 billion in remittances for 2023. Other notable recipients included the Democratic Republic of Congo ($1.4 billion), Uganda ($1.3 billion), Mali ($1.2 billion), and both Sudan and South Africa with $1.0 billion each.

The World Bank highlighted that remittance flows to Sub-Saharan Africa were nearly 1.5 times larger than Foreign Direct Investment (FDI) inflows in 2023 and remained relatively stable. According to the United Nations Conference on Trade and Development (UNCTAD), FDI to the region totalled $38.6 billion in 2023, driven primarily by new project announcements in Kenya and Nigeria.

The report underscored the importance of remittances as a foreign exchange earner in several countries. In Kenya, remittances surpassed key exports such as tourism, tea, coffee, and horticulture. Countries where remittances make up a significant portion of GDP include The Gambia, Lesotho, Comoros, Liberia, and Cabo Verde, with the first three relying on remittances for over one-fifth of their GDP.

Growth in regional remittances for 2023 was driven by notable increases in 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). Conversely, remittances to Nigeria, which represent about 35% of the region's total, fell by 2.9% to $19.5 billion.

Looking ahead, the growth of remittances to Sub-Saharan Africa is projected to recover slightly, from a negative growth of -0.3% in 2023 to an anticipated +1.5% in 2024.