News & Analysis: Remittances

Remittances during COVID-19: Reduce costs to save livelihoods

“As COVID-19 continues to affect the global economy, remittances become more important than ever before to prevent large-scale poverty and starvation. However, a drop in migrants’ wages and employment, fall in tourism, and restrictions on the movement of people, goods and services will likely cause remittances to decline this year.”

via Development Matters (OECD)

COVID-19 Dries Up Ethiopia’s Cash Cow: Remittances

“The inflow of foreign exchange has been dwindling, and it is safe to say there is almost nothing coming in, according to Melese Fikre, a foreign exchange officer at the branch.”

via Addis Fortune

Macro Notes: SSA Increasingly Reliant on Portfolio Flows

“Non-resident capital flows to SSA have grown dramatically over the last decade and increasingly consist of short-term instruments. As the region is now more integrated into global financial markets than ever before, and less reliant on concessionary funding, it is also more exposed to swings in global risk sentiment, commodity prices, currencies, and interest rates.”

via IIF

The humanitarian response to COVID-19 in Somalia will make things worse

“As the COVID-19 pandemic spreads, Somalia is already reporting immediate social, economic and political effects. A rapid reduction in remittances transferred into the country from abroad, falling commodity prices and restricted export markets all pose significant risks.”

via Democracy in Africa

Remittances from migrants to African countries will plunge by nearly a quarter this year

“Sub Saharan African countries will see remittance flows drop by 23.1% to $37 billion in 2020 in the wake of the COVID-19 economic crisis, according to a World Bank forecast. In 2019 it dipped by 0.5% to $48 billion. The bank forecasts there will be a 4% recovery to $38 billion in remittances flows in 2021.”

via Quartz Africa

Remittance flows expected to plunge more than $100bn

“Remittance flows around the world are set to plummet more than $100bn this year, depleting a vital source of financing for developing countries as they struggle with the economic chaos triggered by the pandemic, according to the World Bank.”

via Financial Times

The Coronavirus’s Impact Throughout Africa (podcast)

“Michelle D. Gavin, CFR’s senior fellow for Africa studies, sits down with James M. Lindsay to discuss how the novel coronavirus is affecting Angola, Botswana, Sudan, and other nations throughout Africa.”

via Council on Foreign Relations

COVID-19 Crisis Through a Migration Lens

“Delayed and cancelled flights, increased freight costs and a huge fall in demand have brought the flower trade to a virtual standstill, and some flower farms in Kenya have already gone out of business since lockdown began.”

via World Bank

Economic impact of COVID-19 on tourism and remittances: Insights from Egypt

“The pandemic is likely to have a significant economic toll. For each month that the COVID‑19 crisis persists, our simulations using IFPRI’s Social Accounting Matrix (SAM) multiplier model for Egypt suggest national GDP could fall by between 0.7% and 0.8% (EGP 36-41 billion or $2.3-$2.6 billion). Household incomes are likely to fall, particularly among the poor.”

via IFPRI

Economic and Market Analysis and Opinion of COVID-19 on West and Central Africa

“Apart from the food security implications of a COVID-19-triggered economic slowdown, an extensive spread of the disease in a poorer and more food insecure country could take a heavier toll on the economy than it has in those countries first impacted by the rapid spread of the virus. Countries with high levels of food insecurity are generally more vulnerable and less prepared.”

via Relief Web