Nigeria, Egypt, and Morocco emerged as the top recipients of diaspora remittances into Africa in 2024, collectively leading a continent-wide inflow of $95 billion, according to the newly released State of Africa’s Infrastructure Report 2025 by the Africa Finance Corporation (AFC).
The report underscores the growing relevance of remittance flows as a vital source of external finance for African economies, often surpassing the consistency and volume of Foreign Direct Investment (FDI) and official development assistance (ODA).
“In 2024, Africa received over $95 billion in remittances from its global diaspora, an amount roughly equivalent to total FDI inflows to the continent that year,” the AFC stated in the report. “Remittances have proven to be a stable and resilient source of external finance, often outperforming portfolio flows and development aid in terms of consistency.”
The AFC emphasized that, barring 2024, remittances have outpaced FDI inflows across the continent for several consecutive years. This trend, the corporation argued, reflects the enduring commitment of the African diaspora to support their families and communities at home — even amid global economic uncertainties.
While remittance inflows are largely channelled towards household consumption, education, and social obligations, the AFC believes they also reveal trusted financial channels that can be leveraged for more structured national investment opportunities, particularly through tools such as diaspora bonds.
“Remittances demonstrate that the African diaspora maintains confidence in sending funds home through recognized and safe financial pathways. This trust can be built upon to develop more formal investment frameworks that mobilize diaspora capital for national infrastructure and development projects,” the report noted.
The report reviewed several past attempts by African nations to harness diaspora wealth through diaspora bond issuance. For instance, Ethiopia issued diaspora bonds in 2011 to support the construction of its Grand Renaissance Dam, while Nigeria, Kenya, and Egypt have also issued similar bonds for development financing.
However, outcomes have been mixed, primarily due to governance concerns, low investor confidence, and exchange rate volatility. To address these barriers and unlock the full potential of diaspora-linked investments, the AFC recommends several strategic measures:
Strengthening investor confidence through transparency, good governance, and consistent repayment track records.
Reducing macroeconomic risks, such as inflation and currency instability.
Offering competitive returns indexed to inflation or denominated in foreign currencies to protect against local market volatility.
Legal protections and financial regulations that assure diaspora investors of their rights and returns.
With Nigeria topping Africa’s remittance inflows alongside Egypt, the findings present a golden opportunity for policy reform. The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance could explore fresh diaspora engagement strategies that align with the AFC’s recommendations.
Experts have long argued that Nigeria’s diaspora community — one of the largest in the world — remains an untapped source of capital that could significantly complement public and private infrastructure financing, especially amid dwindling foreign investment and rising debt servicing obligations.
Additionally, leveraging these flows through bonds and structured investment instruments could also reduce reliance on external borrowing, boost foreign reserves, and promote inclusive development.
The AFC report concludes by urging African governments and financial institutions to innovate beyond remittances as mere consumption inflows. Instead, countries should integrate diaspora capital into national development strategies, using trusted mechanisms to attract long-term investment from their global communities.
“Africa must view its diaspora as not just senders of money, but as strategic investors and partners in building a resilient economic future,” the report stated.