(Ecofin Agency) - The volume of remittances in Sub-Saharan Africa is expected to increase by 1.9% in 2023, reaching $54 billion. The World Bank anticipates an improvement in the flow of remittances to Sub-Saharan Africa in 2024, reaching 2.5%.

According to the World Bank's most recent report on migration and development published on December 18, 2023, migrant remittances to Sub-Saharan African countries are projected to rise by 1.9% in 2023, totalling $54 billion. The decelerated growth rate of remittances in 2023, compared to the +6.1% seen in 2022, is primarily linked to the economic slowdown in the home countries, limiting employment and wage progression opportunities for migrant workers.

Significant growth in remittances is expected in Mozambique (48.5%), Rwanda (16.8%), and Ethiopia (16%). Nigeria, which accounts for about 38% of the total migrant remittances to Sub-Saharan Africa, is expected to receive $21 billion by the end of 2023, representing a 2% increase from the previous year. The other two major beneficiaries of migrant transfers in the region, namely Ghana and Kenya, are expected to record gains estimated at 5.6% and 3.8%, respectively.

The report also indicates that the flow of remittances to Sub-Saharan Africa is expected to improve in 2024, reaching 2.5%, mainly thanks to a 3% increase in money transfers to Nigeria. The World Bank further explained that migrant remittances to low- and middle-income countries are projected to reach $669 billion this year, reflecting a growth rate of 3.8% compared to 2022. These money transfers have thus become the primary source of financing for low- and middle-income countries in 2023, surpassing by $250 billion the flows of foreign direct investments, which are more volatile.