Remittance flows to Sub-Sahara African nations were estimated to have declined by 12.5% in 2020.
The Global Knowledge Partnership on Migration and Development (KNOMAD) in its migration and development brief 34 showed “the decline was almost entirely due to a 27.7% decline in remittance flows to Nigeria, which alone accounted for over 40% of remittance flows to the region.”
“The decrease in flows to Nigeria is partly due to a high percentage on the naira/US dollar exchange rate in informal markets, and an unexpected policy directive requiring the agent banks of money transfer operators to pay out in US dollars or hard currency rather than naira” the brief said.
Remittance flows to other Sub-Sahara African nations excluding Nigeria witnessed an increase of 2.3%.
The countries include Zambia with 37%, Zimbabwe 31%, Mozambique and Somalia 16%, Kenya 9%, and Ghana with 5%.
Remittances inflows for Cape Verde, The Gambia, and Senegal, remittances fared better than projected.
Overall, the COVID-19 pandemic through “restricted mobility measures and the employment situation in the main host countries” played a huge impact on remittances flows to the region.
Remittance flows to the region are projected to rise by 2.6% at $ 43 in 2021.