Home > Great Britain > African Diaspora Remittances -News Worth Knowing

African Diaspora Remittances -News Worth Knowing

The sending of remittances home by Africans working overseas has become an essential part of economic life. Very often this is money that reaches the poor unlike most aid or donor money or goods which disappear once state or party apparatchiks get their greedy, grimy hands on it. This is an important source of income for Zimbabweans and it is clearly obvious that the foreign exchange raised is most useful to Mugabe’s corrupt regime.  Now that recession has hit the countries where Africans work the amount of remittances sent is falling rapidly and this may well have dire economic consequences for millions of Africans.  The article below in the South African Business Day discusses the impact the recession has on remittances sent to home countries by the African diaspora.

Business Day: “REPORTS are starting to creep into the African media about how thousands of families may no longer be able to feed themselves, pay school fees or build houses because of a dwindling flow of money from western countries that has been helping to keep Africa afloat.

No, it is not aid we are talking about here but money generated by Africans for Africans. Remittances, worth billions of dollars a year to the continent, are starting to decline as Africans working in western markets start to feel the pinch of the global financial crisis.

A recent World Bank report said remittance inflows to developing countries could fall by anything between 1% and 6% this year from last year , which would have a marked effect on communities in Africa. The report suggests that shrinking economies will also lead to anti- immigrant hostility, further affecting the employment of foreigners in western countries.

The figures of what developing countries gain from remittances are staggering. The Bank says that in 2005 remittances to developing countries, dominated by flows to China, India and Mexico, totalled $188bn — twice the amount of aid to these countries…” See Link below for more;

via Business Day – News Worth Knowing.

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