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Remittances from the African Diaspora Decline

The World Bank expects sub-Saharan Africa to see a significant drop in migrant remittance inflows in 2020, much more than last year’s slight decline of 0.5 percent, due to the coronavirus pandemic. From $48 billion in 2019, remittance flows to the region are forecast to decline by 23.1 percent to reach $37 billion this year, while they are to recover by 4 percent in 2021, the bank said in a forecast. The expected decline is due to factors driven by the virus outbreak. Key economies where a large share of African migrants reside and are major sources of remittances sent to the region have been hit hard by the pandemic. Usually, remittances are counter-cyclical, where workers send more money in times of crisis and hardship back home. This time, however, the pandemic has affected all countries, creating additional uncertainties, the bank explained.

SOURCE: VENTURES AFRICA

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