Finance

Ghanaians who depend on remittances in trouble – Report

If you depend solely on relations abroad for funds to support daily living or schooling then hard times are before you.

This is because remittances are expected to decline by about 23.1% in sub-Saharan Africa, and Ghana will be one of the hardest hit.

Many Ghanaians depend on their relations abroad particularly the USA, Germany, France, UK, Italy amongst others to survive.

And Ghana which is ranked 11th in terms of remittances to Africa in 2019, according to the World Bank will be the hardest hit. The country registered remittances of about 5% of Gross Domestic Product last year, about US$3.5 billion.

According to the World Bank, the amount of money migrant workers remit home is expected to decrease by almost US$110bn this year as the COVID-19 pandemic increases unemployment across the world.

At the same time, remittances to low- and middle-income countries (LMICs) are projected to fall by nearly 20% to US$445 billion “representing the loss of a crucial financial lifeline for many vulnerable households”.

Describing the decrease as the worst in recent history, including the 2008 financial crisis, the Washington-based development bank said migrant workers were especially vulnerable to losing their jobs during coronavirus lockdowns which are still largely in place across the developed world.

Remittances is about three times the amount of aid received by low-income countries and have become a cornerstone of living standards across the developing world.

The World Bank said studies showed that remittances alleviated poverty in lower- and middle-income countries, improved nutrition, were linked to higher spending on education, and reduced child labour in disadvantaged households.

“A fall in remittances affect families’ ability to spend on these areas as more of their finances will be directed to solve food shortages and immediate livelihoods needs,” it said.

Europe will top the decline in remittance flows followed by Central Asia and Sub Saharan Africa.

East Asia and the Pacific, which includes Indonesia and the Philippines, follows suit.

Source: MyNewsGh.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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