• About Us
  • Contact
Thursday, March 23, 2023
No Result
View All Result
NEWSLETTER
The Business Wiz
  • Home
  • Featured News
  • Economic
    • Currency
  • Investment
  • Markets
    • Stock Market
  • Sectors
    • Agriculture
    • Commodities
      • Markets
    • Construction
    • Energy
    • Financial Services
    • Information Technology
    • Infrastructure
    • Manufacturing
    • Markets
    • Mining
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation
  • Home
  • Featured News
  • Economic
    • Currency
  • Investment
  • Markets
    • Stock Market
  • Sectors
    • Agriculture
    • Commodities
      • Markets
    • Construction
    • Energy
    • Financial Services
    • Information Technology
    • Infrastructure
    • Manufacturing
    • Markets
    • Mining
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation
No Result
View All Result
The Business Wiz
No Result
View All Result
Home Currency

Africa recorded $49 billion remittances in 2021 despite high cost

by Web Admin
30/05/2022
in Currency
0
Africa recorded $49 billion remittances in 2021 despite high cost
Share on FacebookShare on Twitter

Remittances to sub-Saharan Africa grew 14 percent to $49 billion in 2021, the strongest gain since 2018, even as the continent remained the costliest developing region to send money.

According to the report, a strong motivation by migrants to assist families in home countries under pandemic conditions underpinned these extraordinary increases.

According to the latest World Bank Migration and Development Brief dated May 2022, aggregate regional remittance costs averaged 7.8 percent between October and December last year.

The average cost of remitting $200 from countries in the least expensive corridors amounted to 3.4 percent while costs for the most expensive corridors registered 31.5 percent during the same period, an increase of 12.3 percent from the year earlier.

The report titled “A war in Pandemic: Implications of the Ukraine Crisis and Covid-19 on Global Governance of Migration and Remittance Flows,” notes that though intraregional migrants in Africa comprise more than 70 percent of all international migration, remittance costs are high due to the small quantities of formal flows and use of black-market exchange rates.

The fee for sending $200 in remittances from Tanzania to neighbouring Uganda, for example, would cost 29.7 percent of the transaction amount.

The report, however, shows the continent recorded strong growth in remittances in 2021, largely as a result of a firm pace of economic activity in Europe and the US, although facing rising headwinds from inflation tied to distortions in supply chains and surging commodity prices.

In 2020, remittances to the region fell by eight percent due to the Covid-19 pandemic.

“As Covid-19 incidence eased in the industrial economies, job prospects improved, allowing African migrants to supplement remittances to home countries that continued to experience sobering consequences of the virus,” says the report.

“A major factor in improving 2021 out-turns was a restoration of recorded inflows to Nigeria, which had plummeted by 27 percent in 2020 due to increased use of informal channels.

The surge in flows to Nigeria by 11.2 percent to $19.2 billion in 2021 accounted for nearly one-third of the overall $6.3 billion increase in remittances to Africa.

Nigeria dominates the region in remittance receipts, having historically accounted for a half of sub-Sahara Africa inflows followed by Ghana. South Sudan and the Democratic Republic of Congo also saw upturns in flows in the period.

Extra-ordinary increase

According to the report, a strong motivation by migrants to assist families in home countries under pandemic conditions underpinned these extraordinary increases.

Kenya benefitted from a 20 percent growth in remittance receipts, with continued momentum in the first quarter of 2022 nearing 25 percent.

Tanzania’s receipts grew by 60 percent and the Gambia enjoyed a 30 percent growth in remittances grounded in a new government and new currency.

Mozambique’s migrant workforce finally responded with some force (a two-thirds increase in flows to $570 million) to support the hard-hit residents of Cabo Delgado, amid an insurgency against mega liquefied natural gas projects in the region.

The report notes that there is uncertainty for remittances to Africa for 2022–23 and risks in the outlook are exceptionally high against the background of global conditions affected by the Russian invasion of Ukraine.

Source: The East African

Web Admin

Web Admin

Next Post
EACOP’s $5b financing headache as environment activists pile pressure

EACOP’s $5b financing headache as environment activists pile pressure

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Exchange Rate

Exchange Rate USD: Thu, 23 Mar.

Recommended

Tanzania’s food stock down to 147,401 tonnes in November, 2022

Tanzania’s food stock down to 147,401 tonnes in November, 2022

2 months ago
African airlines stare at $4 billion loss over costly fuel

African airlines stare at $4 billion loss over costly fuel

9 months ago

Popular News

    News

    Get latest news from us.


    SUBSCRIBE

    Category

    • Agriculture
    • Aviation
    • Banking
    • Commodities
    • Construction
    • CSR
    • Currency
    • Economic
    • Energy
    • Featured News
    • Financial Services
    • Information Technology
    • Infrastructure
    • Investment
    • Jobs
    • Manufacturing
    • Markets
    • Mining
    • Others
    • Q&A Interviews
    • Real estate
    • Telecomunication
    • Tourism
    • Transportation

    About us

    The Business Wiz (TBW) is Tanzania’s premier one-stop online platform providing in-depth, accurate and timely business news, analysis, commentary and online business information portals and research.

    • About Us
    • Contact

    © 2022 The Business Wiz

    No Result
    View All Result
    • Home
    • Featured News
    • Economic
      • Currency
    • Investment
    • Markets
      • Stock Market
    • Sectors
      • Agriculture
      • Commodities
        • Markets
      • Construction
      • Energy
      • Financial Services
      • Information Technology
      • Infrastructure
      • Manufacturing
      • Markets
      • Mining
      • Real estate
      • Telecomunication
      • Tourism
      • Transportation

    © 2022 The Business Wiz

    en English
    ar Arabiczh-CN Chinese (Simplified)en Englishfr Frenchde Germanit Italianru Russianes Spanishsw Swahili