Remittances from Africans living abroad remain a cornerstone of economic support for many families and national economies across the continent.
These funds are crucial for financing education, healthcare, and small businesses, often surpassing foreign aid and investments in significance.
In 2024, ten African countries emerged as the largest beneficiaries of diaspora remittances. According to the World Bank, Africa received $100 billion in remittances in 2023, accounting for 6% of the continent’s GDP. This figure dwarfed official development assistance ($42 billion) and foreign direct investment (FDI) ($48 billion).
The importance of remittances continues to grow as FDI inflows decline. Over the past decade, remittances to Africa have surged by 57%, while FDI has dropped by 41%. Factors driving this shift include income disparities, political instability, and migration due to climate change.
Nigeria remains the largest recipient of remittances, followed by Ghana and Kenya. These funds are critical for sustaining households, supporting education, and boosting local economies.
Here are the top 10 African countries benefiting most from diaspora remittances in 2024, based on World Bank data:
1. Egypt – $22.7 Billion
Egypt tops the list, with $22.7 billion in remittances. These funds are vital for family sustenance and community projects, significantly contributing to the nation’s economy.
2. Nigeria – $19.8 Billion
Nigeria ranks second, receiving $19.8 billion. With a vast global diaspora, remittances are a major source of income for families and a critical driver of economic stability.
3. Morocco – $12.0 Billion
Morocco saw $12.0 billion in remittance inflows. These funds play a key role in meeting household needs and fueling local businesses.
4. Kenya – $4.8 Billion
Kenya received $4.8 billion in remittances, often allocated to education, healthcare, and small-scale investments.
5. Ghana – $4.6 Billion
Ghana recorded $4.6 billion in inflows, which support families and stimulate growth in sectors such as education and agriculture.
6. Senegal – $3.0 Billion
Senegal’s diaspora contributed $3.0 billion. The funds are used for daily living expenses and community development initiatives.
7. Zimbabwe – $3.0 Billion
Zimbabwe matched Senegal with $3.0 billion in remittances, providing families with essential financial support and boosting local businesses.
8. Zambia – $2.8 Billion
Zambia received $2.8 billion, with funds channeled toward household support and grassroots development projects.
9. Uganda – $1.49 Billion
Uganda’s $1.49 billion in remittances supports small business growth and household incomes, driving local economic activities.
10. DR Congo – $1.3 Billion
The Democratic Republic of Congo closes the list with $1.3 billion. These funds assist families with basic needs and bolster community-level economies.
The Growing Role of Remittances
Christian Kaelin, Chairman of Henley & Partners, highlighted the need to rethink global mobility and citizenship frameworks. He emphasized that remittances are not just financial lifelines but also tools for empowerment and economic development.
As the gap between remittances and FDI continues to widen, it’s clear that diaspora contributions are becoming an increasingly vital pillar for African economies.
