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Remittances from Ghanaians living abroad in Ghana increased by 7.3% to reach US $ 3.8 billion in 2018. Remittances to Sub-Saharan African Countries in 2018 contributed significantly to the gross domestic product (GDP) of these countries.
Transfers have risen nearly 10 percent to US $ 46 billion, according to the World Bank's latest report on migration and development.
Ghana was among the top 10 beneficiaries in Africa, including Comoros' 14 million USD, accounting for 19.1% of GDP; Gambia ($ 245 million, 15.3%); Lesotho ($ 438 million or 13.7%); Cape Verde ($ 243 million, 12.3%); Liberia ($ 387 million or 12%); Zimbabwe ($ 1.8 billion, or 9.6%); Senegal (US $ 2.2 billion, 9.1%); Togo (452 million USD, 8.5%); and Nigeria ($ 24.3 billion, or 6.1 per cent).
The Bank estimates that officially registered annual remittances to low- and middle-income countries reached $ 529 billion last year, an increase of 9.6 percent from the previous record of $ 483 billion in 2017 .
Global remittances, which include flows to high-income countries, reached USD 689 billion in 2018 compared to USD 633 billion in 2017.
However, the cost of sending money to Africa remained high at 10%, while the overall average cost of sending $ 200 was about 7% in the first quarter of 2019 , according to the World Bank's Remittance Prices Worldwide database.
Reducing the remittance costs to 3% by 2030 globally is one of the goals of the Sustainable Development Goals (SDGs).
Banks were the most expensive to send money abroad, charging an average fee of 11% in the first quarter of 2019, according to the Brief.
Closing the bank accounts of some fund delivery service providers due to the bank risk reduction policy, according to which the perceived financial benefit of the management of an account l 39; the benefits, has led to an increase in the cost of transfers, the Brief said.
Post offices ranked second, with more than 7%, because shipping costs included a premium when national post offices maintained an exclusive partnership with a wire transfer operator.
This premium averaged 1.5% worldwide and reached 4% in some countries in the last quarter of 2018.
"Remittances are becoming the largest source of external funding in developing countries," said Dilip Ratha, lead author of the Brief.
"The high costs of money transfers reduce the benefits of migration.
"The renegotiation of exclusive partnerships and the opportunity for new players to operate through national post offices, banks and telecommunications companies will increase competition and lower remittance prices.
The note also examined the SDGs goal of reducing recruitment costs paid by migrant workers, which are high, particularly for low-skilled migrants.
"Millions of low-skilled migrant workers are exposed to poor recruitment practices, including exorbitant recruitment costs," said Michal Rutkowski, Senior Director of Social Protection and Jobs at the World Bank.
"We must redouble efforts to create jobs in developing countries and monitor and reduce the recruitment costs paid by these workers."
-GNA
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