Remittances to Ghana reach $ 3.6 billion
World Bank Migration and Development Report for 2021 found 5% increase to $ 3.6 billion in remittances to Ghana despite lockdowns in many remittance countries .
The receiving countries for Ghanaian migrants are the United States, the United Kingdom, Côte d’Ivoire, Italy, Germany and Canada.
The resilience of Ghanaian migrants has been hailed in the face of the harsh economic impact on the top ten remittance countries due to COVID-19.
Ms. Abibatou Wane, Head of Mission, International Organization for Migration (IOM), speaking at the GIZ-Ghana Program Multi-stakeholder Dialogue on Migration and the Diaspora on Remittances in Accra.
The dialogue, which was themed “Optimizing Remittances for Post-COVID-19 Recovery and Resilience” also marked International Remittance Family Day.
She said the World Bank had forecast that remittances to low- and middle-income countries would fall by 7%, to reach $ 508 billion in 2020.
This is followed by a further 7.5% drop to $ 470 billion in 2021 due to the lockdown and expected economic effects of Covid-19 in remittance countries but contrary to expectations, remittances to Ghana have instead increased.
Ms. Wane said that in Ghana, remittances were a growing source of foreign funds, raising the standard of living of vulnerable and low-income households across Ghana.
According to an IOM study of the Ghanaian market, Ghana was in 2019 the second largest recipient of remittances in sub-Saharan Africa.
Ms Wane said flows through official channels increased from $ 117.6 million in 2007 to about $ 3.8 billion in 2018, with remittances equivalent to 7.4 percent of gross domestic product.
“It is estimated that if controlled, remittances sent through informal channels could increase total flows by up to 50%,” she said.
She said the financial sector in Ghana, according to Findex, has gone through a period of change over the past 5 years, with financial inclusion reaching 57% in 2017.
Ms. Wane informed that the increase in mobile penetration has created opportunities for the expansion of financial services by mobile money providers, pushing Ghana to overtake several markets to become the fastest growing mobile money market. faster in Africa.