Net financial inflows to Africa down 1.8%
A new AfDB report said financial flows were estimated at $208 billion.Net financial inflows to Africa declined by 1.8 per cent last year due to contraction in investments, according to a new report from the African Development Bank (AfDB).
In its Economic Outlook for 2016, it said that financial flows were estimated at $208 billion (€186 billion), adding that Diaspora remittances remained the most stable and important single source of external finance at $64 billion, while official development assistance increased by four per cent.
The bank expects the African economy to grow 3.7 per cent this year and 4.5 per cent next year, thanks to a gradual improvement in commodity prices.
It said the economic performance remained firm in 2015 despite global headwinds and regional shocks. The continent remained the second fastest growing economic region after East Asia.
“African countries have shown remarkable resilience in the face of global economic adversity. Turning Africa’s steady resilience into better lives for Africans requires strong policy action to promote faster and more inclusive growth,” AfDB acting director, development research department Abebe Shimeles said in a statement.
According to the World Bank, remittances to Africa remained stable in 2015 while global remittances decreased thanks to the development of mobile banking as an effective way to transfer money on the continent.
Half of the 261 mobile money service providers across the globe are in sub-Saharan Africa, according to a report from operator WorldRemit.
In Africa, the biggest beneficiaries of remittances are Nigeria and Egypt, followed by Morocco, Tunisia, Algeria, Senegal, Kenya, South Africa, Uganda and Mali.