“Remittances are now one of Africa’s largest and most stable sources of external finance.”
A new report by the Institute for Security Studies (ISS) has revealed that Egypt and Nigeria accounted for the largest share of Africa’s $95 billion remittance inflows in 2024, making remittances one of the continent’s most stable external finance sources.
According to the report, inflows rose from $53 billion in 2010 to $95 billion in 2024, increasing their share of Africa’s GDP from 3.6% to 5.1% over the period.
“In just over a decade, remittance inflows to Africa have surged from approximately $53 billion in 2010 to roughly $95 billion in 2024,” ISS noted. “This reflects their growing macroeconomic significance, as they have matched or exceeded Official Development Assistance (ODA) and Foreign Direct Investment (FDI) in recent years.”
The report added that North and West Africa received the highest remittance volumes, with Egypt, Nigeria and Morocco leading the continent. By contrast, countries like Angola and Seychelles received less than 1% of inflows.
Remittances, it said, play a crucial role in household livelihoods, food security, healthcare and education, while providing a stable source of foreign exchange for many economies.
“Closing the gap between remittances’ potential and their current use requires lowering transfer costs, integrating them into financial systems and incentivising diaspora investment,” the report stated.