Think about how people send money to Ghana? This write-up will throw light on the volume of remittances the Ghanaian diaspora sends back home.
We will also try to define and understand remittances and will take a look at some of the main and most common reasons for sending remittances.
Ghana, a Sub Saharan African country, has some of the lowest poverty levels, pushing millions of its people below the poverty line. Political turmoil, military interventions to dethrone democratically elected regimes has hampered economic stability in the country. This repeated cycle has rendered millions of people fend for themselves to find reasonable means of earning for which purpose they travelled to the outside world.
Let’s now define remittances.
Remittance:- “Remit” means ‘’to send back’’ is the root word from which the main word remittance is derived. Therefore, we can define remittance as an amount of money one earns in a foreign land and then sends back to his family in his homeland.
Now, let’s take a look at the volume of money transfers to Ghana numerically from abroad as a remittance.
- In 2015, Ghana received 4.982 billion USD as remittances from Ghanaian diaspora spread worldwide;
- In 2016, Ghana received 2.98 billion USD as remittances from Ghanaian diaspora spread worldwide;
- In 2017, Ghana received 3.536 billion USD as remittances from Ghanaian diaspora spread worldwide;
- In 2018, Ghana received 3.521 billion USD as remittances from Ghanaian diaspora spread worldwide;
- In 2019, Ghana received 4.054 billion USD as remittances from Ghanaian diaspora spread worldwide; and
- In 2020, Ghana received 3.565 billion USD as remittances from the Ghanaian diaspora spread worldwide.
From these statistics, we realize that Ghana reached the peak of remittances in 2015 with a whopping 4982.44 million or 4.982 billion USD.
Now, let’s take a look at the reasons to send money to Ghana online or in cash while working abroad.
Education:- People send foreign currencies from a foreign land which make a handsome amount when translated into the local currency, to afford quality education for children, which is way too difficult in routine earnings and normal circumstances.
Financial help:- With remittances that expatriates send back home, they can enable their families to look after their immediate needs and liabilities, requiring large sums of money without which those needs and liabilities keep lingering.
Accommodation: Remittances can help you pay your rent if you happen to live in a rented house and help you save money to purchase property and build your own house on that at a later stage or even during your stay abroad.
International travelling:- Remittances help make international travelling easy and viable financially. While living abroad, you will be required to travel to and from your country of origin. Remittances help you pay for tickets easily either in the local currency or after being translated into another.
Purchase globally:- Remittances help you pay for international stuff, which is difficult without remittances.
Family-related:- Any need can arise in a family anytime. Pleasant moments come with planning, but the worse can happen unexpectedly. Financial preparation for such moments is important if you are to meet the unexpected in a better way. Because being unprepared can either aggravate the trouble or sniff out the fun from the joyous moments.
Conclusion:- Ghana is a Sub Saharan African country which, this article reveals, has seen huge peaks and valleys in its remittance amount. The recent decline was witnessed due to the pandemic. Still, earlier fluctuations can be attributed primarily to the political unrest the country has been undergoing for the past several decades now. Online money transfer to Ghana through the digital payment system really helped to sustain remittance flow.