Rabat – Monetary transfers from Moroccans living abroad are projected to reach $11.4 billion in 2022, making the country the third top ranking one in Africa in terms of remittances’ value, according to the World Bank Group’s Migration and Development Brief.
Africa’s two most populous countries, Egypt and Nigeria, sat at the top of the ranking, with $32.3 billion and $20.9 billion transferred to them respectively.
Morocco’s remittances are routinely bolstered by the large numbers of Moroccans who live in Europe, particularly in countries like France, Spain, Belgium, and the Netherlands.
The monetary transfers are important to Morocco, accounting for a significant share of its foreign currency reserves. In 2020, remittances were 6.5% of the country’s gross domestic product (GDP).
While Egypt, Nigeria, and Morocco dominate in terms of the net amount of money, Gambia benefits from remittances the most, relative to its GDP, as they are expected to make up over 28% of the country’s GDP.
Despite lingering economic challenges, the African continent’s remittances are set to surpass $100 billion for the first time since the World Bank started recording the figures.
The continent is currently much in need of remittances, to combat the global rise in prices of energy and food products. Droughts and a challenging international economy have seen the continent’s food security woes worsen.
While remittances can be an important source of income for countries, the large number of skilled workers and experts migrating to Europe poses a challenge for the continent’s development.
Research previously estimated that human capital flight cost Morocco $87.7 billion between 1970 and 2010.
