Where are the flows?

The report examines remittance flows in sub-Saharan Africa, highlighting that while they are a vital source of capital—often exceeding official development assistance (ODA) and foreign direct investment (FDI)—formal flows are constrained by high costs and regulatory barriers. Nigeria is the dominant receiver of remittances in the region. The study identifies a significant mismatch between migration patterns and formal remittance data, suggesting a high level of informality. It argues that shifting these flows to formal channels would enhance financial sector development and overall economic growth in SSA.

• Remittances are a critical macroeconomic capital flow for sub-Saharan Africa, with values comparable to other foreign capital sources. In 2015, the region received USD34.6 billion in remittances, compared to USD39 billion in FDI and USD37.1 billion in ODA.
• Sub-Saharan Africa is the most expensive region globally for sending remittances, with an average cost of 9.1% of the transaction value as of the third quarter of 2017, exceeding the global average of 7.2%. In specific corridors, such as from Nigeria to Benin, Mali, or Togo, fees can reach 22%.
• Remittance inflows are heavily concentrated in a few countries; Nigeria is the largest receiver, averaging USD20.6 billion annually. Together with Senegal, Kenya, Uganda, and Ghana, these five countries receive 78% of all remittances in the region.
• Intra-regional remittance flows are growing faster than flows from outside the region. Between 2012 and 2016, intra-SSA flows increased by 22%, while flows from outside the region grew by 7%.
• The United States and United Kingdom are the top external senders of remittances to SSA, providing USD7.4 billion and USD5.1 billion respectively on average. In 2016, UK remittance flows to SSA (USD5.3 billion) exceeded the combined value of UK ODA and FDI flows to the region.
• Common currency unions, specifically those using CFA francs pegged to the euro, facilitate higher remittance flows by removing foreign exchange fees and spreads.
• There is a significant discrepancy between migration patterns and formal remittance data, indicating vast unreported informal flows. For example, while 62% of migrants in Côte d’Ivoire come from Burkina Faso, Burkinabe recipients are not proportionally prominent in formal remittance data.
• Remittances have a disproportionately high economic impact on smaller economies and island states. In Liberia, remittances represent 24% of GDP, while in The Gambia and Lesotho, they account for 18% of GDP.
• Formal remittance channels are hindered by 'first-mile', 'middle-mile', and 'last-mile' barriers, including high costs, lack of physical access points, and stringent identification requirements (AML/CFT) that are difficult for rural or undocumented migrants to meet.

APA

Cooper, B., Denoon-Stevens, C., Tuyeni, R., & Esser, P. A. (2018). Where are the flows? FSD Africa. https://fsdafrica.org/wp-content/uploads/2025/05/Where-are-the-flows-Volume-1-scoping-study_Cenfri-FSDA_April-2018.pdf

Chicago

Cooper, Barry, Cat Denoon-Stevens, Rose Tuyeni, and Peter Antonia Esser. Where are the flows? FSD Africa, 2018. https://fsdafrica.org/wp-content/uploads/2025/05/Where-are-the-flows-Volume-1-scoping-study_Cenfri-FSDA_April-2018.pdf.

Wikipedia

{{cite report |last1=Cooper |first1=Barry |last2=Denoon-Stevens |first2=Cat |last3=Tuyeni |first3=Rose |last4=Esser |first4=Peter Antonia |title=Where are the flows? |publisher=FSD Africa |date=April 2018 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Where-are-the-flows-Volume-1-scoping-study_Cenfri-FSDA_April-2018.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cooper2018where, author = {Cooper, Barry and Denoon-Stevens, Cat and Tuyeni, Rose and Esser, Peter Antonia}, title = {{Where are the flows?}}, institution = {FSD Africa}, year = {2018}, month = apr, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Where-are-the-flows-Volume-1-scoping-study_Cenfri-FSDA_April-2018.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }