…Boston Group lists Dangote, GTB, UBA, others as continental economic drivers
Diaspora Nigerians sent $22 billion home last year, an African record and the fifth largest remittance by immigrants, the World Bank has said.
Egypt received $20 billion from its citizens abroad, according to figures published by the bank.
The World Bank said payments from immigrants back to their home countries rebounded to reach a new record last year but the costs of transferring funds also increased.
The stronger-than-expected recovery in remittances — payments that are key to supporting the economies of many poor countries — was driven by growth in Europe, Russia and the United States (U.S), the World Bank said in a report.
The bank estimates that the officially recorded remittances to low and middle-income countries reached $466 billion in 2017, an increase of 8.5 per cent over $429 billion in 2016. The remittances are expected to increase by about four per cent this year.
Remittance inflows improved in all regions. The top remittance recipients were India with $69 billion, followed by China ($64 billion), the Philippines ($33 billion), Mexico ($31 billion), Nigeria and Egypt followed.
The global average cost of sending $200 was 7.1 per cent in the first quarter of the year, and sub-Saharan Africa remains the most expensive place to send money to, where the average cost is 9.4 per cent.
“While remittances are growing, countries, institutions, and development agencies must continue to chip away at high costs of remitting so that families receive more of the money,” the lead author of the report, Dilip Ratha, said.
The bank urged countries to take steps to simplify the process to reduce the costs, including “introducing more efficient technology”.
By region, Europe and Central Asia saw the biggest growth last year, jumping 21 per cent, while sub-Saharan Africa rose 11 per cent.
East Asia and the Pacific saw the biggest inflows of $130 billion, as South Asia received $117 billion, followed by Latin America with $80 billion.
In the meantime, the globally-acclaimed consulting firm, Boston Consulting Group (BCG), has listed Globacom as one of the six African companies driving the amalgamation of economic activities within the continent.
The others include Dangote Group, Guaranty Trust Bank, United Bank for Africa, Nigerian Breweries and Jumia.
According to BCG in a report just released, a total of 150 companies are blazing the trail toward a more integrated Africa.
They consist of 75 Africa-based companies and 75 multinational companies that have established impressive track records in Africa and are contributing to further integration of the continent.
The 150 companies were drawn from 18 countries, namely Kenya, Nigeria, Egypt, South Africa, Morocco, Côte d’Ivoire, Mauritius, Tanzania, and Tunisia. The multinational companies also listed in the report are mainly from France, the United Kingdom, and the United States, while the rest are from China, India, Indonesia, Qatar, and the UAE.
The report indicated that economic integration is gathering momentum on the continent despite the barriers of fragmentation which exist in Africa. Globacom and the other listed companies are driving the process, according to the report.
The various ways that the companies are making their impact felt on the continent include the active expansion of their footprint across several African countries, building strong African brands, using local innovation to adapt to the African consumer; investment in local talent and developing people advantage; building local ecosystems and connecting Africa by facilitating the movement of people, goods, data, and information.
BCG Senior Partner and co-author of the report, Patrick Dupoux, said: “Fragmentation in Africa is much greater than anywhere else in the world, and it adds significantly to the economic challenges facing countries that typically lack the critical mass to compete globally. Despite these barriers, we see more signs of economic integration with each passing month, quarter, and year. The primary drivers come from within the continent, led by African business.”
Nation with additional report from Daily Trust
