Remittances to Africa Down 5.4% This Year | New times
African countries are expected to experience a significant drop in remittances of 5.4%, from $ 44 billion in 2020 to $ 41 billion in 2021.
This is what emerges from the conclusions of the last continental report on migration.
This trend has been partly attributed to the fact that most African citizens working abroad have lost their jobs while some are struggling with reduced incomes.
The slow recovery in most of the countries where migrants reside is also a part of it, the report said.
The trajectory, according to experts, signals difficulties for African households who depend on their friends and relatives working abroad.
The report entitled “African Regional Review of the Implementation of the Global Compact for Safe, Orderly and Regular Migration” shows that the costs associated with sending remittances to Africa are still among the highest in the world.
For example, the report notes that a migrant who sends $ 200 to his family in Africa incurs a fee estimated at $ 18 of the value of the transaction.
This indicates that the continent is still far from reaching the three percent target, previously set in Sustainable Development Goal 10.
The development was set with the goal of reducing the transaction costs of migrant remittances to less than three percent and eliminating corridors with costs above 5 percent.
The trend is darker for countries with the largest diaspora populations.
The latest data indicates that remittances constitute around 23% of GDP in sub-Saharan Africa.