The Impact of COVID-19 on Remittances for Development in Africa
ECDPM (European Centre for Development Policy Management) has published a new paper on the impact of COVID-19 on remittances for Development in Africa.
The paper underlines that remittrans are under threat by the COVID-19 pandemic. Lockdown measures in host countries have caused many migrants to lose their jobs, consequently reducing remittance flows to developing countries. In 2020, the World Bank estimates a historical decline in global remittances of US$110 billion, with sub-Saharan Africa (SSA) expected to experience a decline of about 23.1%.
The paper stresses the importance of filling the development financing gaps that have been widened by shrinking remittances and suggests adaptations and increases in official development assistance as an immediate solution to cushion some of the short-run effects of the COVID-19 pandemic.
The paper also highlights the short-and medium-term measures that policymakers and development partners should take to lessen the decline in remittance flows.
