Sub-Saharan Africa remittances 'to hit $24bn'

Nov 10, 2010

Remittances sent to Sub-Saharan Africa are likely to reach $24 billion (€17.4 billion) by 2012, The World Bank has forecast.

According to the Migration and Remittances Factbook 2011, money being sent home by people living overseas remained a resilient source of finance for many countries during the global economic downturn, but developing economies suffered somewhat due to high unemployment in migrant-receiving nations. Sub-Saharan Africa remittances are estimated to remain unchanged from last year during 2010 - at $21 billion - before rising to $22 billion in 2011. The growth rate for the region dipped by 3.7 per cent in 2009 - more than had been expected - and Manager of the Migration and Remittance Unit at the World Bank Dilip Ratha explained there are "major structural and regulatory changes" that are hindering expansion, for example financial crime regulations are acting as a "roadblock" to the mobile money transfer market.

Equity Bank, Barclays and Western Union are three of the most popular service providers used by Kenyans sending money home from abroad, The World Bank recently found.