Prime News Ghana

How 23% drop in remittance inflow could affect Ghanaian households 

By Justice Kofi Bimpeh

 

The 23% drop in remittance inflow could affect Ghanaian households due to the impact of Covid-19 pandemic.

Some households in the country rely on money from relatives working abroad to be able to survive.

The outbreak of Covid-19 has led to lockdowns in many parts of the world and forcing people out of jobs.

It is estimated that some 23% of the nation's 3.8 billion remittance inflow likely to be lost this year. 

The World Bank also reported that remittance around the world likely to drop by more than 100 billion this year. 

Project Assistance for Migration and Development at the International Organisation for Migration Eric Kwame in a radio interview explained that this will more affect Ghanaian households because most people working abroad spends their first year paying the various recruitment agencies through which they went there.

He added that due to the pandemic most of the migrants have lost their jobs which makes them vulnerable where they are.

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"Looking at the shortfall of about 20 to 23% that is a lot of money, the question I will ask is what does that mean? The situation with Ghana is that economic migrants most of them, first of all, have to go through recruitment agencies and they spend the first year of work paying back the recruitment agencies so if as a result of Covid-19 most of them are losing their jobs what it means is that it will be difficult to pay back most of these recruitment agencies that leaves the migrants in a very vulnerable situation."

Stating the negative impact of the situation, he said most of these monies from abroad are used in paying school fees and supporting household incomes.

He believes with this drop in remittances some Ghanaians households will be pushed below the safety net.

"Beyond that, if migrate are going to send money back home, these monies are going to migrant-sending households which are mostly household that is so much dependent on remittances, remittances are being used to pay school fees and support household income, with this impact from Covid-19 we are likely to see a lot of people being pushed below the safety net that could affect a lot of people below the line..."