Egypt, Nigeria, Morocco Obtain 61.2% Remittances in Africa
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The Mo Ibrahim Basis, an African non-grant basis, says Egypt, Nigeria, and Morocco obtain 61.1 % of remittances into Africa.
The inspiration disclosed this in its 2024 discussion board report, titled, ‘Financing Africa. The place is the Cash?’
Printed on June 18, the report famous that Egypt is the most important recipient of remittances in Africa, receiving inflows of $28.3 billion in 2022; adopted by Nigeria ($20.1 billion), and Morocco ($11.2 billion).
In accordance with the report, Africa accounts for 12.3 % of world remittances, “with practically $100 billion in 2022”.
“Roughly 160 million folks born in Africa at present reside and work outdoors the continent,” the report reads.
Their remittances, in keeping with the inspiration, assist the residing prices of an estimated 200 million kinfolk — representing a major supply of overseas foreign money.
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“In comparison with different areas, Africa accounts for 12.3% of world remittances of which Egypt, Nigeria and Morocco obtain 61.1% mixed. The ratio of remittances relative to Africa’s financial system makes them an necessary earnings supply,” the additional report reads.
“In 2022, Africa’s remittances of $96.7 billion represented 3.5% of the continent’s GDP, the very best of any world area.
“In 2022, for 19 nations remittances accounted for at the very least 4% of their GDP. In 4 nations – Gambia, Lesotho, Somalia and Comoros – this exceeded 20%.”
When correctly accounted for, the inspiration stated, onerous foreign money remittances may very well be used to enhance a rustic’s creditworthiness and sovereign danger scores by credit standing companies.
The organisation stated they may additionally perform as a supply of overseas alternate (FX).
“Remittance flows may be used as collateral to enhance scores of sub-sovereign debtors,” the inspiration stated.
The inspiration added that by the usage of remittance-backed securities, a number of banks in growing nations have been in a position to increase greater than $15 billion from overseas capital markets since 2000.