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Egypt, Nigeria, and Morocco collectively receive 61.1% of all remittances sent to Africa.
This information was revealed the Mo Ibrahim Foundation, in their 2024 forum report titled ‘Financing Africa. Where is the Money?’.
Egypt, Nigeria, Morocco Lead in top African destinations for Remittance InflowsSource: UGC
Released on June 18, the report highlights that Egypt is the top recipient of remittances in Africa, with $28.3 billion received in 2022, followed by Nigeria with $20.1 billion, and Morocco with $11.2 billion.
The report also states that Africa accounts for 12.3% of global remittances, totaling nearly $100 billion in 2022.
The report stated:
“Compared to other regions, Africa accounts for 12.3% of global remittances of which Egypt, Nigeria and Morocco receive 61.1% combined. "The ratio of remittances relative to Africa’s economy makes them an important income source.“In 2022, Africa’s remittances of $96.7 billion represented 3.5% of the continent’s GDP, the highest of any world region."According to the foundation, remittances help cover the living expenses of approximately 200 million family members, serving as a crucial source of foreign currency.
The report highlighted that in 2022, remittances made up at least 4% of the GDP in 19 countries.
In Gambia, Lesotho, Somalia, and Comoros, this figure exceeded 20%. The foundation also noted that when accurately tracked, these hard currency remittances can enhance a country’s creditworthiness and improve its sovereign risk ratings as assessed by credit rating agencies.
The organization indicated that remittances can also serve as a source of foreign exchange (FX). They mentioned that remittance flows could be used as collateral to enhance the credit ratings of sub-sovereign borrowers.
The foundation also highlighted that by utilizing remittance-backed securities, several banks in developing countries have raised over $15 billion from international capital markets since 2000.
Source: Legit.ng
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