African Diaspora and Remittances

Hundreds of billions of dollars are transmitted as private remittances globally every year. Remittances follow migration, and the ongoing global refugee crisis inevitably will lead to more need for migrants to send funds back to their homelands. Nowhere is the role of diaspora in sustaining local livelihoods and supporting national development as evident as in Africa, where 40% of the population still lives in poverty. Diaspora remittances support family livelihoods and community development, and sustain local innovation and entrepreneurship. They are also central to the creation of transnational communities and networks where new democratic values and knowledge are co-produced. However, remittance transfers to Africa remain among the costliest in the world. Remittances often flow through informal channels, highlighting security concerns. This collaborative Policy Report is an outcome of the discussions that began at the Forum that Boston University Center for Finance, Law & Policy co-organized with African Diaspora organizations in Washington DC in 2014, and brings together contributions from diaspora members, academic scholars, and development experts.