Expats send USD351bn home

BUSINESS

|
Image: By BiztechAfrica
Expats send USD351bn home

A new World Bank report says remittance flows from people living outside their country of birth topped USD351 billion to developing countries this year. More than 215 million people live outside their countries of birth.

The report says remittance flows to developing countries are expected to total USD351 billion this year, and worldwide remittances, including those to high-income countries, will reach USD406 billion. By 2014, remittances to all countries will reach USD515 billion and to developing countries USD441 billion. Lower remittance costs are helping drive this growth, the report said.

The top global recipients of remittances were India, China, Mexico and the Phillipines; followed by Pakistan, Bangladesh, Nigeria, Egypt and Lebanon.

Nigerians living abroad remitted USD11 billion this year.

Remittance flows to Sub-Saharan Africa showed 7.4% growth, while growth slowed in North Africa.

“Despite the global economic crisis that has impacted private capital flows, remittance flows to developing countries have remained resilient, posting an estimated growth of 8 percent in 2011,” said Hans Timmer, Director of the Bank’s Development Prospects Group. “Remittance flows to all developing regions have grown this year, for the first time since the financial crisis.”

There are, however, some serious downside risks to the Bank’s outlook for international remittance and migration flows, said the bank. Persistent unemployment in Europe and the US is affecting employment prospects of existing migrants and hardening political attitudes toward new immigration. Volatile exchange rates and uncertainty about the direction of oil prices also present further risks to the outlook for remittances.  

More recently, some of the GCC countries, which are critically dependent on migrant workers, are considering tighter quotas for migrant workers to protect jobs for their own citizens.

“Such policies may impact remittance flows to developing countries in the longer term,” said Dilip Ratha, Manager of the Bank’s Migration and Remittances Unit and a co-author of the Migration and Development Brief. “But in the medium-term the risk of disruption to these flows is relatively low.”

The report noted that in several small low-income countries, remittances exceed a fifth of GDP and provide the largest source of foreign exchange. It said the remittances sent home by migrants to developing countries are three times the size of official development assistance and represent a lifeline for the poor.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Riverbed to be acquired by Thoma Bravo in $3.6bn deal

Riverbed Technology has entered into a definitive agreement to be acquired by leading private equity investment firm Thoma Bravo, LLC and Teachers’ Private Capital, the private investor department of Ontario Teachers’ Pension Plan.  Read More

Egyptian revival spurs MEA PC market growth

The PC market in the Middle East and Africa (MEA) region grew 2.1 per cent year-on-year in the third quarter of 2014, according to the International Data Corporation (IDC), spurred by the revival of the Egyptian market and two significant education deals in Pakistan.   Read More

ICT set to shape Africa's economic landscape in 2015

With public cloud in emerging African countries set to grow at a compound annual growth rate of up to 84% over the coming five years, the year 2015 heralds the beginning of a new era for ICT adoption across the continent, says IDC.   Read More

88mph and Microsoft Ventures partner to support startups in Nigeria

Microsoft, in partnership with 88mph, has announced the expansion of the Microsoft Ventures program into Nigeria. Read More

Riverbed names new senior VP of Sales in EMEA

Riverbed Technology has announced that Kristian Thyregod has been promoted to Senior Vice President Sales, in Europe, the Middle East and Africa (EMEA). Read More

M&A, infrastructure sharing, liberalisation to reshape telecoms in Africa

Mergers, acquisitions, infrastructure sharing and market liberalisation will reshape Africa’s telecommunications markets by 2018, according to market analysts Frost & Sullivan. Read More

Dell, Intel study uncovers truth behind technology and the workforce

Dell and Intel have unveiled findings from its second Global Evolving Workforce Study, which identifies, and explores current and future trends pertaining to the workplace and workforce, and the role that technology has played in their evolution.  Read More

PWC: Optimism abounds but a bumpy journey ahead for some

PwC’s ‘Capital Projects & infrastructure in East Africa, Southern Africa and West Africa,’ report says infrastructure spend in the region is projected to reach $180bn per annum by 2025. Read More

Why govt listed Glo, others as top firms

Nigeria’s national carrier, Globacom and 99 other top notch firms have been listed as top 100 Firms in Nigeria for the 2014 fiscal year. The top 100 companies list is based on international benchmark set by the International Integrated Reporting Council. Read More

Women can lead 21st century ICT industry, says Zinox chief

With the right mix of innovation, business focus, accountability and ambition, women entrepreneurs can spearhead the evolution of the ICT industry in the 21st century, says the Chairman, Zinox Group. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

PWC: Optimism abounds but a bumpy journey ahead for somePWC: Optimism abounds but a bumpy journey ahead for some

PwC’s ‘Capital Projects & infrastructure in East Africa, Southern Africa and West Africa,’ report says infrastructure spend in the region is projected to reach $180bn per annum by 2025.

IN DEPTH

Africa lags on digital migration Africa lags on digital migration

Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.