• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      How MPC left policy rates unchanged to mitigate COVID-19 impact on Nigerians

      5 hrs

      Finance

      Decent first 2021 auction for DMO, but drive to finance FGN deficit still poses a challenge

      January 26, 2021

      Finance

      Exposing Nigeria’s vulnerabilities: Covid-19, crude oil downsides from weak global macro environment

      January 26, 2021

      Finance

      Nigeria, Africa remittances on target as Wari, Lycaremit sign partnership

      January 21, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Africa Investment Forum

      Davos summit: AfDB asks developed countries to fulfil $100bn yearly climate finance pledge

      8 hrs

      Frontpage

      Africa loses up to $15bn yearly from climate change, laments Adesina, AfDBchief

      10 hrs

      Technology

      Tencent $1trn market cap on hold after 11% stock surge

      10 hrs

      Frontpage

      SDG: Covid-19 magnifies financing gap in developing countries by 70%, says OECD

      23 hrs

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Frontpage

      TCN chief calls out DisCos’ funding structure for power industry challenges

      5 hrs

      Oil and Gas

      Pipeline repairs cost NNPC N75.23bn in one year  

      8 hrs

      Nigeria Frontier Markets

      Port Harcourt DisCo explains meter distribution strategy

      10 hrs

      Oil and Gas

      Nigeria’s electricity DisCos create imbalance costing N20.5bn in 3 weeks  

      January 26, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Misconstruing Data Protection Officer function within organisations

      January 25, 2021

      Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

Frontpage

Remittance income seen driving economic growth in Africa as Nigeria emerges biggest recipient

September 19, 2018691 views0 comments

Despite an economic slowdown, most African countries are reported to have a positive economic outlook, with remittance income being a major factor, according to ICAEW’s (the institute of Chartered Accountants in England and Wales) latest report – Economic Insight: Africa Q3 2018 – launched Wednesday

The report, commissioned by ICAEW and produced by partner and forecaster Oxford Economics, provides a snapshot of the region’s economic performance. The regions include; East Africa, West and Central Africa, Franc Zone, Northern Africa, Southern Africa.

Remittance income was emphasized in the report as a major economic factor for most African countries with Nigeria being the biggest receiver of remittances on the continent. The West African economic powerhouse received 29 percent ($ 22bn) of total remittances flowing onto the continent in 2017, mostly from the gulf, the US and United Kingdom.

Egypt was the second biggest receiver of remittances on the continent with $20 billion of remittances. One of the countries highlighted where remittance flows continues to play an important role in terms of external accounts is Ghana.

Read Also:

  • Eko Atlantic City to utilise local content for economic diversification…
  • Why Universal Basic Income Should Be President Biden’s Top Priority
  • Covid-19 ensures company income tax dips 18.3% to N1.4trn in 2020  
  • Olam Nigeria bags 2020 ‘Employer of Choice’ award in Africa
  • Nigeria, Africa remittances on target as Wari, Lycaremit sign partnership

Remittance inflows, according to the World Bank, amounted to $2.5 billion in 2014: equal to roughly 18.6 percent of total exports that year. However, in 2017 the remittance inflows subsequently declined to $2.2 billion equivalent to 15.8 percent of exports

According to the report, East Africa continues to be the continent’s best performing region with a GDP forecast at 6.3 percent. This positive outlook is due to the region’s economic diversification and investment-driven growth. Ethiopia remains the region’s powerhouse, with growth forecast at 8.1 percent, thanks to the recent reforms under Abiy Ahmed, its new prime minister.

In Central and West Africa, growth is forecast at 2.9 percent. The constrained growth in the region is due to subdued non-oil economic activity by Nigeria – the region’s powerhouse. Ghana by contrast is the best performing country in the region with a forecast growth of 6.5 percent.

Michael Armstrong, regional director, ICAEW Middle East, Africa and South Asia said: “Despite the recent growth slump; all regions in Africa are projected to report a positive economic outlook, with remittance income expected to be a key economic booster in the coming months.”

Growth in the franc zone is forecast at 4.6 percent, largely driven by a boost of 7.4 percent in the region’s biggest economy, Ivory Coast, where investment is driving rapid expansion.

North Africa’s Egypt is forecast at 5.3%, as a result of structural and policy reforms, which have boosted manufacturing and investment. The county’s tourism sector has also continued to recover. Likewise, Libya is expected to record a growth of 16.5%, owing to posted improvements in oil production after the civil conflict.

Southern Africa has been affected by continued slow growth by the regional heavyweight South Africa, forecast at 1.5%. Angola, the region’s other economic leader, has the same forecast of 1.5%. Strong growth in both Botswana and Zambia is said to have little effect on the region’s overall performance.

Uganda’s economic growth was reported to have recovered markedly last year. The country is expected to post a surplus of about 5.6 percent of GDP this year, supported by project aid and remittances inflows.

The report notes that despite remittances playing an important role in African economies, policies should focus on reducing the cost of remitting funds.

Share on Facebook Tweet Email
TagsAfrican CBN Economic Nigeria NSE
PreviousFG to rake in N17bn from sale of 21% stake in Nigeria Security Printing & Minting Coy
NextGTBank supports, showcases Africa’s fashion industry with ‘fashion weekend’

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Olam Nigeria bags 2020 ‘Employer of Choice’ award in Africa
  • Covid-19 ensures company income tax dips 18.3% to N1.4trn in 2020  
  • Analysts weigh up wheat price expectations, following Russian export curbs
  • Insurance fails to address 64% of global economic losses in 2020 – Aon report  
  • How MPC left policy rates unchanged to mitigate COVID-19 impact on Nigerians

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

First Bank, GTB, UBA, 7 others record N135bn earnings from e-transactions

Banking December 19, 2019

1
2

Soybeans and wheat remain steady as grain harvest in the US continues at a slow pace

Frontpage November 13, 2019

3

Nigeria’s manufacturing sector records fastest year growth in over 10 quarters

Frontpage May 25, 2018

4

Rising debt: We are mindful of our borrowings, FG insists

Frontpage April 22, 2019

5

FMDQ lists N10bn pioneer power bond as Viathan taps debt capital market for funding

Frontpage March 6, 2018

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.