COVID-19: Diaspora’s money transfer to Africa may decline by 23%

Remittances from the African diaspora are expected to decline by 23% this year due to the COVID-19 pandemic and its economic consequences.

This year, the World Bank predicts that remittances from the diaspora to sub-Saharan Africa will fall by 23%. They currently represent 48 billion dollars. The problem is not only African, it is global, according to economist Dilip Ratha who spoke on the World Bank website in mid-April.

The economic crisis in Europe and the United States will make migrant workers a little more vulnerable. Many risk losing their jobs. The flows they generate to Africa are essential.

When migrants send money home, it has a huge effect on poverty reduction. In countries such as Nepal, southern Sudan, Somalia, or Haiti, remittances account for 30% and sometimes 50% of national income.

In some countries, the decline in diaspora transfers will have much more immediate effects for households in Sub-Saharan Africa than the decline in foreign direct investment, or the decline in commodity prices.

Posted by on May 15, 2020. Filed under Finance, News, Zoom. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.