Remittances: Ghana ranks 2nd in Sub-Saharan Africa with $4.6bn in 2023 – WB Report

Ghana emerged as the second-largest recipient of remittances in Sub-Saharan Africa in 2023, receiving an estimated $4.6 billion, according to the latest World Bank 2024 Migration and Development Report.

Nigeria topped the list with an estimated $19.5 billion, followed by Ghana with $4.6 billion.

Despite a slight overall decrease in remittance flows to the region, Ghana’s position highlights the significant role of remittances in the country’s economy.

Other countries in the top ten recipients of remittances in Sub-Saharan Africa included Kenya in third place with an estimated $4.2 billion, Zimbabwe in fourth with $3.1 billion, and Senegal with $2.9 billion in remittances for 2023.

The Democratic Republic of Congo received $1.4 billion, Uganda received $1.3 billion, Mali received $1.2 billion, and both Sudan and South Africa received $1.0 billion each.

The World Bank noted that remittance flows to Sub-Saharan Africa were nearly 1.5 times larger than Foreign Direct Investment (FDI) inflows in 2023 and were relatively more stable.

According to the United Nations Conference on Trade and Development (UNCTAD), FDI to the region totaled $38.6 billion in 2023, driven mainly by greenfield project announcements in Kenya and Nigeria.

The report emphasized that remittances have become the most significant foreign exchange earner in several countries. In Kenya, for instance, remittances exceed the value of key exports such as tourism, tea, coffee, and horticulture. Countries heavily reliant on remittances as a proportion of Gross Domestic Product (GDP) include The Gambia, Lesotho, Comoros, Liberia, and Cabo Verde, with remittances contributing over one-fifth of GDP in the first three countries.

The report also highlighted that regional growth in remittances in 2023 was primarily driven by significant increases in Uganda (15% to $1.4 billion), Rwanda (9.3% to $0.5 billion), Kenya (2.6% to $4.2 billion), and Tanzania (4% to $0.7 billion). Remittances to Nigeria, which constitute about 35 percent of total remittance inflows to the region, decreased by 2.9 percent to $19.5 billion.

Meanwhile, remittances to Sub-Saharan Africa are projected to recover slightly from a negative growth of -0.3 percent in 2023 to +1.5 percent in 2024.