Africa has experienced an enormous shift in its remittance figures and patterns over the past 10 years. Remittances to Africa in 2010 were recorded at USD 40 billion by the World Bank. In 2018, money transfers to Africa were around USD 46 billion in sub-Saharan Africa and USD 62 billion in the Middle East and North Africa combined.
Money transfer has ensured a positive economic outlook on the African economy. One can easily understand how much money is sent to Africa by studying the growth of remittances to the continent. Remittances to Africa have undoubtedly been a building block in the growth and prosperity of the region.
In 2018, Egypt was among one of the top remittance recipients globally, as per data published by the World Bank. The country received USD 29 billion in foreign remittances in 2020, making an overall growth of 17%. Remittances to North Africa and the Middle East grew by 9%, while sub-Saharan Africa saw an increase of 10%.
In fact, the fastest growing migrant population is from sub-Saharan Africa. Lack of job prospects and rising political instability in countries like Libya, Somalia, and Sudan have prompted citizens to migrate overseas in search of better opportunities. Increase in migration eventually fuels their home economies through cross border remittances.
According to the World Bank’s Migration and Remittances report of April 2018, remittances to sub-Saharan African grew from USD 38 billion in 2017 to USD 46 billion in 2018. This significant growth continued in 2019 and 2020 and continued growth is also expected to continue in 2021.