Nigeria ranked behind Egypt in foreign remittance inflows to Africa, which reached $95 billion in 2024, according to a new report by the Institute for Security Studies (ISS), based in Pretoria, South Africa.
The report noted that remittances to the continent rose sharply from $53 billion in 2010, boosting their share of Africa’s GDP from 3.6 per cent to 5.1 per cent. It described remittances as one of Africa’s most stable external financing sources, often exceeding Official Development Assistance (ODA) and matching Foreign Direct Investment (FDI).
In 2024, FDI inflows stood at $97 billion, but 36 per cent of that went to a single urban development project in Egypt, leaving the rest of the continent with about $62 billion. Alongside Egypt, Nigeria and Morocco accounted for the largest shares of Africa’s remittances, while countries such as Angola, Seychelles, and São Tomé and Príncipe received less than 1 per cent.
The ISS stressed that remittances play a crucial role in sustaining households by covering food, health, housing, and education needs, while also stimulating local economies. In countries such as Gambia and Kenya, large portions of the population rely on remittances as a primary source of income, with contributions exceeding 10 per cent of GDP in several African nations.
Despite their scale, the report warned that much of Africa’s remittance flow still moves through informal channels, undermining financial inclusion and accurate data collection. It urged African governments to lower transfer costs, integrate remittances into national financial systems, and create incentives for diaspora investment.
Technological innovation, particularly mobile money and fintech platforms like M-Pesa, MTN MoMo, and Airtel Money, is helping to reduce transfer costs and expand access. Regional initiatives such as the African Continental Free Trade Area (AfCFTA) Protocol on Digital Trade and the Pan-African Payment and Settlement System (PAPSS) were also highlighted as key tools for formalising flows.
Looking ahead, the ISS projected that Africa’s remittances could grow to $168.2 billion by 2043 if strong financial reforms are implemented. It concluded that remittances, once seen mainly as household support, could become a strategic driver of inclusive development and resilience for the continent.
