Abstract
This paper aims to study the impact of remittances from African migrants on their home countries’ growth and development. These funds constitute a steadily increasing financing means in all these countries, even though development aid is still the preferred financing method. To highlight the role of these funds, we relied on a number of experiences as far as their targets and uses are concerned. Globally speaking, stylized facts based on case studies show that remittances have a positive impact on migrants’ home countries’ economies. In particular, they reduce household poverty and thereby increase their well-being. In addition, they stimulate local economic activity and growth. Given the role and stability of these funds, cost reduction is essential to encourage migrants to send more money through official transfer channels. It is also necessary to increase the managerial efficiency of these funds by orienting them towards implementing profitable projects, rather than devoting them entirely to household consumption. Lastly, it is necessary to encourage the capture of related financial flows by the traditional banking system and microfinance institutions.
Highlights
Each year, Africa loses many of its most skilled workers to the benefit of the Northern countries
This paper aims to study the impact of remittances from African migrants on their home countries’ growth and development
According to the World Bank (2006), "the brain drain negative effects are to some extent offset by remittances from migrant workers"
Summary
Africa loses many of its most skilled workers to the benefit of the Northern countries. It has been intensified over the past decade with an average loss of 20,000 professionals per year The most educated and dynamic are those who decide to migrate It is questionable whether remittances from migrants can make up for the resulting deficit. They could lead to dependency, enabling households to specialize in migration instead of using the money to invest in local productive projects. This investigation examines the impact of remittances from African migrants on their countries of origin. The scale and determinants of remittances from African migrants will be highlighted and thirdly, the impact of these funds on the growth and development of their home countries will be examined
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