World bank says Africa could lose $37bn in remittances due to Covid-19

PRETORIA  – Global remittances are forecast to decline by about 20% this year as the economic crisis caused by the coronavirus pandemic shuts down business activity, the World Bank said in a report released on Wednesday.

The apex bank said this is the sharpest decline on record for what has become a lifeline for many people in Africa and elsewhere.

“The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country,” the bank said.

Globally money sent home by workers abroad to low and middle-income countries is forecast to fall by about $445bn.

The decline for sub-Saharan Africa is predicted to be 23% and amount to $37bn this year.