Remittances key to Ghana's economic growth - Graphic MD

At the third edition of the Graphic Business/Stanbic Bank Breakfast Meeting, held at the Labadi Beach Hotel today in Accra, the Managing Director of the Graphic Communications Group Ltd highlighted the crucial role remittances play in Ghana's economy. 

The event, themed "The Remittance Ecosystem: Impact on the Economy," brought together experts to discuss how to harness the potential of remittances to spur economic growth.

Addressing the gathering, the Managing Director underscored the significance of remittances in Ghana’s balance of payments, noting that these inflows, recorded under the capital account by the Bank of Ghana, have seen a substantial rise. According to World Bank data, remittances to Ghana increased from US$2 billion in 2014 to US$5.2 billion in 2023. Ghana is now recognized as the second-largest recipient of remittances in Sub-Saharan Africa, trailing only Nigeria and followed by Kenya and Senegal.

The Managing Director highlighted the direct impact of remittances on poverty reduction, citing research from the International Migration and Development group, which estimates that financial assistance from relatives abroad has lifted approximately two million Ghanaians out of extreme poverty. This assistance is crucial for 18percent of Ghanaian households, according to a report by the International Fund for Agricultural Development (IFAD).

He also pointed out the broader economic benefits of remittances, which contribute to local development by supporting small businesses, home improvements, and education. Advances in financial technology have further boosted the market for digital remittances, reducing transaction costs and increasing efficiency.

However, the Managing Director also highlighted challenges within the remittance system, urging collaboration between policymakers, business leaders, and the banking industry to establish international standards for managing and controlling the integrity of remittance systems. 

He warned that while electronic payment platforms and fintechs are gaining dominance in the remittance ecosystem, the lack of regulation could pose risks to the holistic visibility and benefits of remittances.

His speech concluded with a call to refocus efforts on maximizing the potential revenue from international remittances to ensure that Ghana fully benefits from these inflows in the future. The Managing Director expressed confidence that the insights provided by the keynote speaker and the assembled experts would help Ghana tap into the growing international remittance system to positively impact the nation's economy.