The fact often goes unnoticed. Capital transfers rarely make the headlines when it comes to migration. Quite the opposite: it is the traumatic, harrowing images of migrants seeking a better life that draw the media, alongside sensational headlines built to sell. Yet the African diaspora is achieving remarkable things, sending home considerable sums that feed the economic development of both origin and host countries.
The African diaspora has established itself as a key driver of development through the money it sends to the continent, and some countries now receive far more in transfers than in official development assistance.
In this interview with Dialogue Migration, Sebastiane Ebatamehi sets out the role of remittances in development and poverty reduction. He is confident in the diaspora’s power as an engine of development, and points to strong prospects for the sector over the coming decade.
Mr Ebatamehi is a Nigerian analyst specialising in economic trends, investment flows and African entrepreneurial ecosystems. He turns complex shifts in public policy and markets into practical insight.
“Remittances are one of the most stable and significant sources of external finance for Africa,” he says from the outset, keen to reassure listeners about their development potential. The sums are enormous and, invested wisely, could benefit a great many people. The continent, he notes, took in more than $95 billion in 2024 alone, almost as much as total foreign direct investment (FDI).
Ebatamehi stresses that these remittances let households keep spending through economic crises. Most of the money meets immediate needs, he continues, but it can also spur development when it flows into small businesses, education, housing or infrastructure. Countries such as Morocco and Egypt show this clearly, weaving diaspora finance into their national development strategies.
Even when families spend the money on day-to-day needs, the analyst argues, it reduces vulnerability and lifts social mobility over the long term. “It lets families cover food, rent, healthcare and education, and avoid selling assets or taking on heavy debt,” he explains.
Spending on education and healthcare raises future earning power, while spending on housing and local services stimulates local economies. Over time, these flows build human capital and economic resilience, and help families climb out of poverty step by step.
Like many observers in Africa, Ebatamehi firmly believes the diaspora is a major driver of development, given the sums sent home each year, and not only through money but through the transfer of knowledge and enterprise.
“In financial terms, these remittances rival development aid and, in many countries, exceed it. Nigeria, for instance, received $19.5 billion in 2023,” he explains.
Diaspora professionals, he adds, also bring technical expertise, networks and management skills to their home countries. Many invest in start-ups, especially in financial technology and digital services, linking African markets to global capital and innovation.
The future of remittances in Africa, in his view, looks bright. “Remittances are expected to reach between $120 billion and $150 billion a year over the next decade. That growth is driven by expanding diaspora communities, the build-out of digital remittance infrastructure and Africa’s continued reliance on foreign income,” he says.
Falling transaction costs and stronger migration networks should also make these transfers easier. He concludes: “Remittances will remain a resilient, people-centred financial flow, ahead of foreign aid and rivalling foreign direct investment as the most stable source of external finance for Africa.”
