Remittance flows to Sub-Saharan Africa reached $54 billion in 2023, a slight decrease of 0.3%. According to the World Bank’s latest Migration and Development Brief, despite this decline, remittances remain a critical lifeline for millions across the region, supporting families, funding education and healthcare, and bolstering local economies.
”The World Bank projects a modest rebound in remittance flows to Sub-Saharan Africa in 2024, with an expected growth of 1.5%. This growth is contingent on economic conditions in migrant-hosting countries, particularly the United States and Europe”.
According to the World Bank’s latest Migration and Development Brief, countries such as the Gambia, Lesotho, Comoros, Liberia, and Cabo Verde, which face high poverty rates and limited social safety nets, are most reliant on remittance inflows.
In these nations, remittances provide a vital source of external financing, helping households meet basic needs such as food, shelter, and education.
A major challenge for the region is the high cost of sending remittances.
The World Bank report states that the average cost of sending $200 to Sub-Saharan Africa is around 7.9%, significantly higher than the UN Sustainable Development Goal target of 3%.
This high cost reduces the value of remittances and limits their impact on development. Efforts are underway to reduce remittance costs and improve access to formal remittance channels.
The World Bank is working with governments and financial institutions to address these issues, with digital technologies playing a key role in making remittances faster, cheaper, and more secure. While remittance flows to Sub-Saharan Africa saw a slight decline in 2023, they are expected to rebound in 2024.
Continued efforts to reduce remittance costs and improve access to formal channels are essential for maximizing their positive impact on the region’s development.
