Africa Received $95 Billion in 2024 Remittances as Nigeria, Egypt Lead Inflows – AFC Report
In 2024, Africa recorded over $95 billion in remittance inflows, nearly matching total foreign direct investment (FDI) for the continent that year, according to the 2025 State of Africa’s Infrastructure Report by the Africa Finance Corporation (AFC). This signals the growing significance of diaspora contributions as a cornerstone of Africa’s external financing, particularly in countries like Nigeria, Egypt, and Morocco, which topped the list of recipients.
The AFC emphasized that remittances have consistently outperformed other external finance channels like FDI, portfolio flows, and official development assistance in both value and stability. Nigeria, with its large and engaged diaspora population, was especially noted as a leading remittance hub. The report described this trend as a shift from the historical pattern of capital flight to a more structured inflow of funds, directly linking diaspora wealth with African development.
Historically, Africa lost over $420 billion to capital flight between 1970 and 2004, much of it through opaque, informal routes. These losses limited domestic investments and weakened financial connectivity with the diaspora. However, the current remittance boom offers a turning point, suggesting that the continent could leverage this consistent inflow to strengthen economic resilience and integration.
To capitalize on this momentum, the AFC advocates for embedding diaspora engagement into national development strategies. While many remittances still go toward family support, trusted financial instruments like diaspora bonds are enabling more formalized investment. Nigeria’s $300 million diaspora bond in 2017 was highlighted as a successful example of clear regulatory design, achieving full subscription due to investor confidence.
Despite some countries like Ethiopia and Kenya struggling with uptake, initiatives such as the African Diaspora Investment Fund and the African Institute for Remittances point to growing infrastructure for engaging diaspora capital. Meanwhile, Nigeria continues to lead Sub-Saharan Africa in remittance receipts, with the Central Bank of Nigeria reporting $282.61 million in Q1 2024. Monthly figures varied, but overall, remittances remain a major financial lifeline and a strategic opportunity for Africa’s future.
Source: Nairametrics