World Bank predicts Africa may lose R695 billion in remittances

World Bank predicts Africa may lose R695 billion in remittances

- A new World Bank report shows that remittances to Africa may fall by $37 billion in the year 2020

- The reason for the fall, the report shows, could be due to the economic impact of the coronavirus

- The report also shows that money sent home by workers abroad to low and middle-income countries could fall by about $445 billion (£360 billion)

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The World Bank has predicted a possible loss of $37 billion to Africa with regard to remittances.

This, the World Bank explained, is due to the economic impact of the coronavirus on the continent.

It added that global remittances are also likely to fall by 20% in the year 2020, as the coronavirus hampers economic activities.

Graphic.com.gh reports that this is the sharpest decline for a method that has proven to be a lifeline for several people all over the world.

The reasons for the fall could be traced to challenges in securing employment and earning an income in some countries.

It has been projected that money sent home by workers abroad to low and middle-income countries could fall by about $445 billion (£360 billion).

For sub-Saharan Africa, there is likely to be a 23% fall in 2020, amounting to an estimated $37 billion.

The World Bank again reports that the cost of sending money to Africa is about a third more expensive than the global average.

The average commission charged for sending $200 is 9%, but for southern Africa, it can cost as much as 20%.

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Source: Briefly.co.za

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