Ghana emerged as the second-largest recipient of remittances in Sub-Saharan Africa in 2023, receiving an estimated $4.6 billion, according to the World Bank’s 2024 Migration and Development Report.
Nigeria topped the list, receiving an estimated $19.5 billion in remittances, followed by Ghana with $4.6 billion.
Despite a slight overall decrease in remittance flows to the region, Ghana’s position underscores the significant role of remittances in its economy.
Other top recipients in Sub-Saharan Africa included Kenya in third place with $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 $1.3 billion, Mali $1.2 billion, and both Sudan and South Africa $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 example, remittances exceed the value of key exports such as tourism, tea, coffee, and horticulture. Countries heavily reliant on remittances as a proportion of 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 mainly driven by significant 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). However, remittances to Nigeria, which account for about 35 percent of total remittance inflows to the region, decreased by 2.9 percent to $19.5 billion.
Looking ahead, the growth of remittances to Sub-Saharan Africa is projected to recover slightly from a negative growth rate of -0.3 percent in 2023 to +1.5 percent in 2024.
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