New data reveal that in 2024, remittances sent by Africans living abroad surpassed export revenues in several countries across the continent — and Cape Verde stands out as one of the most notable cases. The study shows that in some economies, money sent by the diaspora amounts to several times the value of the main national exports, becoming a true pillar of economic survival.
Figures compiled by Gil Analytics from RemitScope and the International Trade Centre’s Trade Map (ITC) reveal that in nations such as The Gambia, Comoros, Somalia, Egypt, and Cabo Verde, diaspora inflows were several times greater than revenues from their leading exports.
The trend reflects a wider reliance on remittances as a stabilising force in African economies, with implications for growth, policy, and long-term development.
Diaspora Funds as Economic Pillars
Africa received more than $95 billion in remittances in 2024, marking a financial inflow that exceeded export revenues in a surprising number of countries. These transfers have become more than supplementary support; in some nations they are now the backbone of economic survival.
The pattern is particularly striking in smaller economies or those with significant migrant populations. In The Gambia, remittances of $575.8 million outThe pattern is particularly striking in smaller economies or those with significant migrant populations. In The Gambia, remittances of $575.8 million outweighed groundnut exports of just $15.9 million, a difference of more than thirty-six times.
In Comoros, cloves brought in $21.4 million, while remittances reached $282.4 million, more than thirteen times greater. Somalia recorded exports of live sheep and goats worth $269.9 million, but received $1.73 billion in remittances, over six times higher.
Egypt’s petroleum oils and related products earned $3.54 billion, while remittances amounted to $22.66 billion, showing the massive scale of its diaspora economy. In Cabo Verde, prepared fish exports totalled $57.6 million compared to $324 million in remittances, more than five times greater.
Rwanda, Kenya, Togo, and others also recorded remittance inflows that exceeded the value of their top exports, with ratios ranging from 1.2 in Zimbabwe to 4.5 in Rwanda, reflecting the weight of diverse diaspora contributions.
The Significance of Remittances
Remittances have emerged as an economic stabiliser, cushioning families against inflation, unemployment, and the volatility of global commodity markets. Unlike export earnings, which are subject to price swings, remittances tend to remain steady and even increase in times of crisis.
They also provide diversification of income for countries overly reliant on single commodities, while directly financing essential needs such as food, healthcare, and education. For millions of households, remittances are not only a lifeline but also a source of funds for small businesses and local investment.
A Complex Remittance Landscape
Despite their importance, remittance flows into Africa are governed by a patchwork of policies and regulations that vary between regions and even neighbouring countries. Guidelines around personal identification, transaction limits, and licensing requirements for transfer operators make the formal remittance market cumbersome and expensive.
As a result, many families continue to rely on informal channels that may be faster but come with greater risks. According to the latest World Bank Migration and Development report, Sub-Saharan Africa received an estimated $49 billion in remittances in 2021.
Owing to its massive diaspora population, Nigeria regularly receives the greatest inflows, followed by Ghana, Kenya, and Senegal, while South Africa stands out as the largest sender of remittances to other African countries.
Policy Considerations
The dominance of remittances over exports carries important lessons for policymakers. By lowering transaction costs, formalising remittance systems, and creating viable investment opportunities for the diaspora, governments can maximise the impact of these inflows.
Beyond meeting household needs, remittances could be harnessed to finance infrastructure, housing, and entrepreneurship, turning diaspora contributions into long-term drivers of development.
Source: Business Insider
