Remittances proved vital for the region in 2022, with a total flow of $53 billion, providing much-needed support amidst challenges like food insecurity, droughts, and supply chain disruptions. Nigeria led the way with $20.1 billion in remittances, followed by Ghana ($4.7 billion) and Kenya ($4.1 billion). Other significant recipients included Zimbabwe, Senegal, the Democratic Republic of Congo, Sudan, Uganda, Mali, and South Africa.
💡 Fintech startups are harnessing this inflow to drive innovation in the financial sector, offering solutions for Africans in the diaspora. Nigerian neobank, Kuda, even expanded its remittance services to the UK to address barriers and fees faced by the diaspora.
🌐 However, Sub-Saharan Africa still faces high remittance costs, with an average of 8.0% to send $200 to the region in late 2022, as per the World Bank.
#Remittances #Africa #FinancialInnovation
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