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?’.
Source: 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