World Bank: Remittances to Sub-Saharan Africa to Increase by 1.5% in 2024
According to the World Bank, remittances to Sub-Saharan Africa are expected to increase by 1.5% in 2024, reaching $54 billion, after a slight slowdown of 0.3% in 2023. Although several countries in the region, such as The Gambia (23% of GDP), Lesotho (22%), and Comoros (21%), heavily rely on remittances, the region continues to have the highest money transfer costs in the world.
Transferring $200 to Sub-Saharan Africa costs 7.9%, one of the highest rates globally.
Migrant remittances play a vital role in the economy, and the World Trade Organization (WTO) aims to reduce the associated costs for Sub-Saharan Africa.
During the WTO's 2024 public forum, it was emphasized that reducing the costs of migrant remittances could support the development of least developed countries, the main beneficiaries.
Xiangchen Zhang, WTO Deputy Director-General, stated: "Migrants use remittances to support their families, their brothers and sisters' education. So if we can reduce what it costs them, we can support the development of their countries."
He also highlighted that the investment potential of migrant remittances makes it a priority for international organizations such as the WTO and developing countries, particularly those in Africa.
