Namibia received N$747 million ($43 million) in diaspora remittances in 2023, placing it among the continent’s lowest recipients, according to the World Bank.
According to the World Bank’s Migration and Development Brief, several challenges contribute to Namibia’s relatively low remittance inflows.
The report highlighted that high transaction costs, limited access to formal financial services, and regulatory hurdles often discourage migrants from sending money home.
Additionally, the size of the Namibian diaspora is smaller compared to other African nations with stronger migration patterns.
“Although these remittances reflected the lowest in Africa, these countries benefit from a more established diaspora community than their counterparts in the ranking,” the report read.
The brief noted that across Africa, remittance flows vary based on economic conditions, migration trends, and financial infrastructure.
While countries like Seychelles N$201 million ($11 million), Angola N$219 million ($12 million), and Gabon N$329 million ($18 million) recorded even lower amounts than Namibia, the report highlighted that the need for reforms to improve remittance channels remains critical.
On the other hand, the report says that in 2023, the largest recipients of remittances in the region, measured in US dollar terms, included Nigeria, Ghana, Kenya, and Zimbabwe.
The World Bank noted that remittances had become the most significant source of foreign exchange earnings in several countries.
In Kenya, for instance, remittance inflows were reported to exceed the revenue generated from key exports such as tourism, tea, coffee, and horticulture.
Additionally, the World Bank highlighted that countries such as The Gambia, Lesotho, Comoros, Liberia, and Cabo Verde were more dependent on remittances as a proportion of their GDP.
In particular, remittances were said to contribute more than a fifth of GDP in The Gambia, Lesotho, and Comoros.
The World Bank defines remittances as the transfer of money from people working abroad to their families and communities. Remittances can be in the form of cash or goods.
