Do you send money to Ghana from your host country as an expatriate? Thousands of Africans living abroad queue up every day at money-transfer offices to send home the odd dollar they have saved. Some money from Canada, Germany, Belgium, Austria, and France — the top sources of remittances to developing countries — makes its way deep into Africa’s rural areas. It can send a child to school, construct a home, or purchase food to feed those who remain at home. Some of the money has found its way to Mali’s Kayes region over the years. According to the World Bank, Malians living in France have contributed to the construction of 60% of the infrastructure.
What Are The Circumstances In The UK And Ghana Remittance Market?
Remittances are money transfer to Ghana or elsewhere worldwide, which have had a massive effect on Ghana’s economy over the last decade. Remittances to Ghana have risen from around $450 million in 1999 to $1.8 billion in 2009, equal to 11 percent of GDP and exceeding Official Development Assistance, according to the Bank of Ghana (BoG). For Ghana’s economic growth, the flow of remittances, lowering the cost of these migrant money transfers, and promoting the flow of more structured remittances are all critical.
According to a recent study by Developing Markets Associates (DMA), the UK-Ghana remittance corridor is competitive. However, it emphasizes that unless reforms are made, this will no longer be the case. The study reveals a range of major vulnerabilities and problems in both the UK and Ghanaian markets that, if not addressed, would significantly hinder potential competitiveness. Consumers of online money transfer to Ghana (remittance), the Ghanaian government, and money transfer companies will all suffer as a result of this.
How Remittance Impact On Economy And Poverty Reduction Of A Developing Nation?
A 1% boost in remittance flows results in a 0.25 percent increase in per capita GDP and a 2% reduction in poverty severity on average. Remittances seem to have reduced poverty significantly by rising wages and smoothing consumption levels.
Remittances not only help to alleviate poverty, but they also help to keep people out of poverty. People living on the threshold of poverty often fall into poverty in the face of economic adversity, such as a recession or devastation caused by climate-related disasters. Migrants send money to Ghana online to their families and friends in these circumstances to help with the rehabilitation and reconstruction process, as well as to provide a buffer for their families’ consumption. To put it another way, remittances rise as private capital flows in the homeland (otherwise referred to as countercyclical financial flows).