Africans abroad sent home $124 billion last year, and states want a bigger share
Rising living costs are increasing the needs of families who stayed behind, while governments seek to channel more diaspora money into development.
Africans living abroad sent an estimated $124 billion to their home countries last year, underscoring the importance of the diaspora to the continent's economies.
Remittances now exceed both foreign direct investment and official development assistance in many African countries. For millions of households, they are a lifeline, paying for food, school fees, health care and housing.
The rising cost of living across the continent has increased the needs of families who remained at home, adding to the pressure on relatives abroad.
Governments are seeking ways to channel a greater share of these flows into investment, through diaspora bonds, dedicated savings products and incentives to send money through formal channels. High transfer costs remain an obstacle: sending money to sub-Saharan Africa continues to be more expensive than to any other region of the world, and a significant share of transfers still passes through informal networks.