editor
Kenya continues to dominate diaspora remittances in Eastern Africa, receiving $4.8 billion in 2024, according to newly released World Bank statistics.
This figure dwarfs Somalia’s $1.73 billion and Uganda’s $1.49 billion, cementing Kenya’s position as a leader in leveraging financial support from its global diaspora.
The Democratic Republic of Congo (DRC) and South Sudan saw declines in remittance inflows compared to the previous year, reporting $1.35 billion and $1.14 billion, respectively. Other East African Community (EAC) states—Tanzania, Rwanda, and Burundi—remain below the $1 billion mark in remittances received.
The World Bank’s findings reveal a global trend where remittances have surpassed other forms of financial inflows, such as Foreign Direct Investments (FDIs), in their contributions to low- and middle-income countries. Over the past decade, diaspora inflows have become a critical lifeline for these economies.
Kenya’s remittance-to-GDP ratio now stands at 4.6 percent, marking a significant rise from just $51 million in 2001. Rwanda’s ratio has increased to 3.9 percent, supported by inflows that grew from $518 million in 2023 to $537 million in 2024. Uganda follows with a remittance-to-GDP ratio of 2.6 percent.
In contrast, Tanzania, Burundi, and the DRC remain at the lower end, with remittances accounting for less than 2 percent of their GDP. The DRC, once a leader in the region, experienced a steep decline in inflows, which fell from $3.26 billion in 2022 and $3.3 billion in 2023 to just $1.35 billion in 2024.
Also Read; Bodaboda Drivers Receive Training In Arusha
Burundi’s remittance inflows have consistently averaged below $50 million annually, representing 1.6 percent of GDP. Tanzania, despite its robust economy, recorded $757 million in remittances, contributing only 1 percent to its GDP.Some East African nations, notably South Sudan and Somalia, rely heavily on remittances to support their economies. In 2024, remittances contributed 17.5 percent to South Sudan’s GDP and 13.6 percent to Somalia’s.
While Kenya leads the way, other nations in the region are looking to tap into the potential of diaspora inflows. Analysts point to gaps in formal remittance channels and limited diaspora engagement, particularly in Tanzania, as barriers to maximizing these financial resources.
The World Bank economists Dilip Ratha, Sonia Plaza, and Eung Ju Kim emphasized in a blog post marking International Migrants Day on December 18 that sub-Saharan Africa experienced an estimated 2.4 percent growth in remittance flows in 2024.
The report underscores the importance of these funds for economic stability, household support, and development initiatives.
