Migrant remittances: a climate change lifeline for Africans

The document examines the role of migrant remittances as a resilient financial flow to Africa, highlighting their potential to bypass bureaucratic barriers in climate adaptation. It notes that while remittances reached US$100.1 billion in 2022, high transaction costs and low climate literacy hinder their effectiveness. The brief recommends lowering remittance costs, enhancing diaspora engagement through mechanisms like diaspora bonds, and improving climate literacy to empower local communities in building resilience.

• Remittances are the largest financial inflow to Africa, surpassing both Foreign Direct Investment (FDI) and Official Development Assistance (ODA). In 2022, these flows reached a record US$100.1 billion, representing nearly 6% of the continent's Gross Domestic Product (GDP).
• Africa faces a significant deficit in climate adaptation funding. Between 2021 and 2022, the continent received only US$13 billion, which is 20% of global adaptation flows. Furthermore, 64% of the funding that does reach Africa is directed toward mitigation rather than adaptation.
• Remittances possess unique characteristics that make them highly effective for climate adaptation: they are grant-based, disbursed rapidly, and can reach marginalised groups and local communities directly, bypassing the bureaucratic delays associated with public financing.
• High transaction costs are a major barrier to formal remittance channels in Africa, with an average cost of 9%, the highest globally. Intra-African transfers are even more expensive, averaging 11%, with some countries like Tanzania exceeding 35%.
• Low climate literacy among remittance senders and receivers in Africa limits the agency and informed decision-making required for effective adaptation investments. Literacy rates across 33 surveyed countries range from 23% to 66%, with women's rates averaging 12.8% lower than men's.
• Remittances are particularly critical for countries in fragile or conflict-affected situations. In 2022, these flows averaged more than 4% of GDP in such countries, and in places like Somalia, South Sudan, and the Comoros, the share exceeds 20%.

APA

Mbiyozo, A.-N. (2024). Migrant remittances: a climate change lifeline for Africans. Institute for Security Studies. https://issafrica.s3.amazonaws.com/uploads/pages/1730467548987-pb-195.pdf

Chicago

Mbiyozo, Aimée-Noël. Migrant remittances: a climate change lifeline for Africans. Institute for Security Studies, 2024. https://issafrica.s3.amazonaws.com/uploads/pages/1730467548987-pb-195.pdf.

Wikipedia

{{cite report |last1=Mbiyozo |first1=Aimée-Noël |title=Migrant remittances: a climate change lifeline for Africans |publisher=Institute for Security Studies |date=October 2024 |url=https://issafrica.s3.amazonaws.com/uploads/pages/1730467548987-pb-195.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mbiyozo2024migrant, author = {Mbiyozo, Aimée-Noël}, title = {{Migrant remittances: a climate change lifeline for Africans}}, institution = {Institute for Security Studies}, year = {2024}, month = oct, url = {https://issafrica.s3.amazonaws.com/uploads/pages/1730467548987-pb-195.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }