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When Africans Send Money Home, European and North American Countries Profit Handsomely

 

 

By Shola Adenekan

 

 

Saturday, June 23, 2018.


 

 

When immigrants and expats from Africa – who are based in Europe and North America - send money back home, the countries in which they are based also make money from those transactions.  Dispelling the myth that migrants only send money back to developing countries, new analysis of World Bank data by Xpress Money can reveal that the West has received over $1.5 trillion in such remittances over the last ten years.

 

Highlighting the many occasions where money needs to be transferred into the West  such as by business travellers, shoppers and workers looking for opportunities – Xpress Money found that one in every four dollars transferred via remittances in 2017 was sent to Europe.

 

The recipients may be surprising, with France receiving the most at $25bn, followed by Germany at  $17 billion. The UK is fourth as it makes $4bn.

 

The World Bank estimates that officially recorded remittances to low- and middle-income countries reached $466 billion in 2017, an increase of 8.5 percent over $429 billion in 2016. Global remittances, which include flows to high-income countries, grew 7 percent to $613 billion in 2017, from $573 billion in 2016.

 

According to the study, while receiving less than developing nations, this analysis makes clear that the impact of remittances in the West should not be underestimated – since 2008 the UK alone has received a $50bn economic boost.

 

Sudhesh Giriyan, Chief Executive Officer of Xpress Money says these findings should go a long way to dispelling the myth that remittances are only boosting the economies of developing countries.

 

“Places like the UK and France are also known to attract people all over the world to their famous education institutions, with those studying relying on their family sending money to pay for things like rent,” he says.

 

The World Bank says remittance inflows improved in all regions and the top recipients of remittance in Africa by those in the Diaspora were Nigeria ($22 billion), and Egypt ($20 billion).

 

Remittances are expected to continue to increase in 2018, by 4.1 percent to reach $485 billion. Global remittances are expected to grow 4.6 percent to $642 billion in 2018.

 

 

 

 

When Africans Send Money Home, European and North American Countries Profit Handsomely

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