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Moroccans living abroad are expected to send a record $12 billion back home this year, making the North African nation a top remittance recipient globally and third in Africa, according to the World Bank.
Globally, remittances to low- and middle-income countries are set to hit a new high of $685 billion in 2024.
Africa is a major beneficiary, with 20 countries set to receive significant inflows. Egypt and Nigeria, with large diasporas in the West, are also major players, ranking 7th and 9th globally.
For the first time, remittances to developing countries will likely surpass both foreign investment and official aid combined.
While Sub-Saharan Africa will see a modest increase in remittances to $56 billion, the Middle East and North Africa region is projected to see stronger growth, reaching $58 billion this year. This surge is mainly due to increased inflows to Egypt and reflects the improving economies in Gulf countries where many migrant workers from Egypt, Morocco, and Lebanon live.
Despite representing a smaller chunk of the $685 billion in remittances expected to flow to developing countries this year, these cash transfers remain a lifeline for millions of African families.
In war-torn and poverty-stricken nations like Somalia, Eritrea, and Sudan, remittances are often the only way people can survive, especially when aid and investment struggle to reach these high-risk zones.
In several African countries, remittances make up a huge portion of their economy. For example, in Gambia, remittances are expected to account for a whopping 21.4% of their GDP this year.
This shows how heavily the country relies on its diaspora, mainly in Western Europe and the US, to support families back home.
Lesotho is another example, with remittances making up a significant 20.6% of their GDP, largely driven by migrant workers in South African mines.
India continues to top the list as the biggest recipient of remittances, thanks to its massive global diaspora, particularly in the Middle East, North America, and Europe.
Mexico comes in second, boosted by its roughly 37 million migrants, mostly living in the United States.
Even with emigration restrictions, China is projected to be the third-largest recipient globally, receiving an estimated $48 billion.
While these money transfers offer major economic benefits, the World Bank warns that relying too heavily on them can leave economies vulnerable.
The report stresses the need for countries to create more job opportunities and improve their economies to reduce the need for people to leave in the first place.
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