A recent report launched by the Institute of Chartered Accountants in England and Wales (ICAEW) has said that despite an economic slowdown, most African Countries are having a positive economic outlook.
The report highlights remittances as a key economic driver for most African Countries with Nigeria recording the highest amount of $22 billion dollars in 2017, representing 29% mostly from the Gulf, the US and the United Kingdom.
Egypt was the second biggest receiver of remittances on the continent with $20 billion dollars. Ghana was also one of the countries highlighted where remittance flows continues to play an important role in terms of external accounts. According to the World Bank, remittance inflows amounted to $2.5 billion in 2014 equal roughly 18.6% of Ghana’s total export same year. Interestingly, diaspora remittances were Kenya’s highest foreign exchange earner, overtaking tea, coffee and tourism. Remittances contribute to financial services expansion and drive the growth of financial inclusion.