Remittance

Remittances to Somalia represent a lifeline in a landscape marred by challenges. In 2023, the Somali diaspora generously sent approximately $1.73 billion back home, a staggering figure that surpasses the total of all development and humanitarian aid received. This essential flow of funds is crucial—it’s estimated that these remittances account for between 30% and 50% of Somalia's GDP. Families depend on this support for their basic needs, including food, education, healthcare, and even access to clean water. However, as we…

The Hidden Costs of Remittances: A Closer Look at Africa In a world where financial connections span continents, remittances serve as a lifeline for countless families. They support not only basic needs but also education and healthcare for those left behind. However, despite their critical role, the high transaction costs associated with sending money to Africa impede the true potential of these financial inflows. It raises an important question: why, in this age of technological advancement, are these costs still so…