Boosting African Diasporic Economic Development Potential

 Estimates indicate that the population of individuals of African descent residing outside the continent ranges between 140 million and 200 million. Diasporas can impact economic activity in their host and origin counties by providing remittances, social and human capital, and transfer of knowledge. 

At the global level, remittance flows to low- and middle-income countries (LMICs) are projected to expand by 2.8 percent in 2025, reaching approximately US$690 billion. Within Africa, remittance inflows are expected to maintain steady growth, with Sub-Saharan Africa (SSA) anticipated to receive between US$57 and US$58 billion. Recent data underscores the scale and resilience of these financial flows: 2023: Remittances to LMICs totaled approximately US$656 billion, of which SSA received about US$54 billion, representing a marginal decline of 0.3 percent compared to 2022. 2024: SSA’s receipts increased to an estimated US$56 billion, while remittances to the African continent as a whole—including North Africa—exceeded US$100 billion.
 

The magnitude of these flows is particularly notable when compared to other external resources. In 2021, remittances to Africa amounted to nearly US$96 billion, substantially surpassing the US$35 billion in official development assistance (ODA) received that year. In many African economies, remittances have outpaced both ODA and foreign direct investment (FDI), underscoring their strategic importance.

At the household and community levels, remittances contribute directly to essential expenditures such as food security, education, healthcare, and small-scale enterprise development. In key economies including Egypt, Kenya, Ghana, and Nigeria, remittances have become a central pillar of external financing.

The African diaspora thus represents not only a significant demographic presence but also a vital economic and developmental asset. Remittances, in particular, continue to function as a stable and under-recognized driver of growth, providing a reliable source of financing even in periods of broader financial volatility.