Report: Remittances to Ghana elevated to US$3.6 billion in 2020

Remittances to Ghana elevated by 5% to US$3.6 billion final 12 months, World Financial institution’s 2021 Migration and Growth report has mentioned.

Ghana was ranked second behind Nigeria benefiting considerably from remittance flows final 12 months.

In accordance with the report, except for Nigeria the place there was a major decline in remittances, international inflows to Africa went up by 2.3%.

“Remittance flows to the area have been estimated to have declined by 12.5% in 2020. The decline was virtually solely as a result of a 27.7% decline in remittance flows to Nigeria, which alone accounted for over 40% of remittance flows to the area.”

“Excluding Nigeria, remittance flows to sub-Saharan African elevated by 2.3%, demonstrating resilience at a time of disaster. Certainly, sturdy remittance progress was reported in Zambia (37%), Mozambique (16%), Kenya (9%), and Ghana (5%)”, the report added.

High remittance recipients in sub-Saharan Africa in 2020 (US$)

Nigeria 17.2 billion
Ghana 3.6   billion
Kenya 3.1   billion
Senegal 2.6   billion
DR Congo 1.9   billion
Somalia 1.7   billion
South Sudan 1.2   billion
Zimbabwe 1.2   billion
Uganda 1.1   billion
Mali 1 billion

2021 projection

In 2021, remittance flows to the area are projected to rise by 2.6%, supported by enhancing prospects for progress in high-income international locations.

Information on remittance flows to sub-Saharan Africa are sparse and of uneven high quality, with some international locations nonetheless utilizing the outdated Fourth IMF Stability of Funds Handbook slightly than the Sixth, whereas a number of different international locations don’t report information in any respect.

Excessive-frequency cellphone surveys in some international locations reported decreases in remittances for a big proportion of households even whereas recorded remittances reported by official sources report will increase in flows.

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The shift from casual to formal channels as a result of closure of borders explains partially the rise within the quantity of remittances recorded by central banks.

Remittance prices

Sub-Saharan Africa stays the costliest area to ship cash to, the place sending US$200 prices a mean of 8.2% within the fourth quarter of 2020.

Inside the area, which experiences excessive intra-regional migration, it’s costly to ship cash from South Africa to Botswana (19.6%), Zimbabwe (14%), and to Malawi (16%).

In accordance with the report, regardless of COVID-19, remittance flows remained resilient in 2020, registering a smaller decline than beforehand projected.

Formally recorded remittance flows to low- and middle-income international locations reached $540 billion in 2020, simply 1.6% under the 2019 complete of US$548 billion.

The decline in recorded remittance flows in 2020 was smaller than the one in the course of the 2009 international monetary disaster (4.8%).

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