The tentacles of the global economic meltdown are going to bear hard on Africa’s financial inflows from its Diaspora, from figures unique to the current year, the World Bank has revealed.
According to the report in the November publication dubbed the Migration & Development Brief, the percentage of remittances to the continent will stagnate though this will still mean a margin of growth.
Comparatively, 2011 saw a remittance rate of 6.8%, better than the 2010 margins, a success story of inflows from relations of Africans abroad, in a scale going back to 2009.
Despite the flat projection of inflows, Africa will still obtain $31B which translates to Sh2.63 trillion in Kenyan currency. The biggest beneficiaries for 2012 will include Nigeria, which will turn the highest Diaspora inflows in total, with Lesotho and Liberia having revenue from their expatriates, abroad, figure largely in their respective GDP.
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The blunt will not just disfigure Africa’s expectations. According to the World Bank, third world countries across the globe will experience a percentage drop of Diaspora funds by 6.5% in comparison with 2011’s 11.7% figures. Worldwide though, country to country remittances will hike, despite the economic slowdown by 3.9%, this being a reduction of more than 7.1% from the forgoing year’s growth margin.
Kenya, one of the African countries whose bulk of Diaspora immigrants live in Western nations will feel the side effects mostly because Europe has been one of the directly affected regions by the post-2008 financial crunch. A similar situation will cut across the developing states of the Asian mainland, which are already undergoing negative inflows. Ironically, nations whose populations live in Russia and the Gulf region will sustain the momentum of remittance they have enjoyed for years.
”Regions with large numbers of migrants in oil exporting countries continue to see robust growth in internal remittance flows.” This is according to the World Bank.
This report by the global financier is quite accurate as far as the Kenyan fact file is concerned. Since March of the year, the country has been experiencing a consecutive drop in inflows from relations abroad, with a month-to-month case in point being the August-September transition which saw a 2.4% margin drop in inflows.
“The decline resulted from a marginal reduction of inflows from the European region,” the Central Bank of Kenya (CBK) pointed out.
In spite of the poor state of things, Africa still stands tall in relying on its Diaspora community to remit most of its development money. The World Bank shows that Diaspora injections are still triple the sum that the continent receives from donors, marina investors from abroad and via other international efforts.