COVID-19: World Bank predicts Africa could lose $37 billion in remittances
- A new World Bank report shows that remittances to Africa may fall by $37 billion in the year 2020
- The reason for the fall, the report shows, could be due to the economic impact of the coronavirus
- The report also shows that money sent home by workers abroad to low and middle-income countries could fall by about $445 billion (£360 billion)
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The World Bank has predicted a possible loss of $37 billion to Africa with regard to remittances.
This, the World Bank explained, is due to the economic impact of the coronavirus on the continent.
It added that global remittances are also likely to fall by 20% in the year 2020, as the coronavirus hampers economic activities.
READ ALSO: South Africa sets $26 billion aside to save the economy from COVID-19
Graphic.com.gh reports that this is the sharpest decline for a method that has proven to be a lifeline for several people all over the world.
The reasons for the fall, YEN.com.gh has learned, could be traced to challenges in securing employment and earning an income in some countries.
It has been projected that money sent home by workers abroad to low and middle-income countries could fall by about $445 billion (£360 billion).
For sub-Saharan Africa, there is likely to be a 23% fall in 2020, amounting to an estimated $37 billion.
The World Bank again reports that the cost of sending money to Africa is about a third more expensive than the global average.
The average commission charged for sending $200 is 9%, but for southern Africa, it can cost as much as 20%.
YEN.com.gh earlier reported that in the World Bank’s 2019 report, it was realised that Ghana placed 11th on the list of African countries that received the most volumes of funds from abroad.
Ghana recorded remittances of about 5% of its Gross Domestic Product (GDP) in 2019.
It fell behind Nigeria, which secured the 10th position and Togo which was in the 7th position.
The first, second, third and fourth positions were taken by Comoros, Lesotho, The Gambia (13.2% of GDP) and Liberia (12.0% of GDP) respectively.
READ ALSO: Ghana's economy grew by 6.5% in 2019 - Ghana Statistical Service reports
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