Africa Likely To Lose US$37bn In Global Remittances Due To Covid-19

The World Bank is warning that Sub-Saharan Africa’s chunk of remittances from abroad could be frittered down to the tune of US$37billion due to the constraints of the Coronavirus pandemic.

The forecast is that up to 23% of monies that Africans receive from relatives abroad will not come in due to the pandemic.

Many relatives abroad will not be able to send the money because the pandemic is taking a huge toll on their salaries, as unemployment in many countries across the globe spike.

On the whole, global remittances are forecast to reduce by 20%. This means some US$445billion will not reach people in low and middle income country who depend on such remittances as lifeline.

For Africa, the World Bank points out that the situation is complicated further by the fact that it costs more to send money to people on the continent from abroad than anywhere else.

According to the World Bank’s report, the average commission charged for sending $200 is 9%, but for southern Africa it can cost as much as 20%.