According to a report by the World Bank and Knomad, diaspora remittances to Sub-Saharan Africa declined to $42 billion in 2020 from $48 billion in 2019; a 12.5% drop in the face of the covid19 pandemic.
The decline according to the report was mainly caused by movement restrictions introduced in most countries around the world and a rise in unemployment in the major host countries.
Nigeria, the largest recipient of foreign remittances in Sub-Saharan Africa, accounted for over 40% of the total remittance flows to the region. However, the nation suffered from the high premium on the naira/US dollar exchange rate in the informal markets and unsuitable policies for money transfer agents according to the report.
Zambia, Mozambique, Kenya, and Ghana recorded 37%, 16%, 9% and 5% growth in remittances respectively in 2020.
“The Sub-Saharan Africa region had the highest average remittance cost at 8.2% in Q4 2020 compared to other regions the,” report stated.