Here’s why Ghana ranked second in Africa for remittance flows in 2023 – World Bank report

The country recorded an impressive USD 4.6 billion in remittance receipts, showcasing the significant role of the diaspora in supporting the national economy.

Nigeria topped the list with a substantial USD 19.5 billion in remittance flows. Following Ghana, Kenya ranked third with USD 4.2 billion, Zimbabwe fourth with USD 3.1 billion, and Senegal fifth with USD 2.9 billion in remittance inflows.

The World Bank highlighted the increasing importance of remittances in its report, noting that remittance flows to Sub-Saharan Africa were nearly 1.5 times the size of Foreign Direct Investment (FDI) inflows in 2023 and demonstrated greater stability.

FDI flows to the region reached USD 38.6 billion, driven primarily by greenfield project announcements in Kenya and Nigeria (UNCTAD 2024).

“Remittances have become the most important foreign exchange earner in several countries,” the World Bank stated. For instance, in Kenya, remittances now exceed the country’s key exports, including tourism, tea, coffee, and horticulture.

Countries more dependent on remittance receipts as a proportion of Gross Domestic Product (GDP) include The Gambia, Lesotho, Comoros, Liberia, and Cabo Verde, with remittances contributing more than a fifth of GDP in the first three countries.

The report further detailed regional growth in remittances for 2023, largely driven by strong increases in Uganda (15 percent to USD 1.4 billion), Rwanda (9.3 percent to USD 0.5 billion), Kenya (2.6 percent to USD 4.2 billion), and Tanzania (4 percent to USD 0.7 billion).

However, remittances to Nigeria, which account for approximately 35 percent of total remittance inflows to the region, decreased by 2.9 percent to USD 19.5 billion.