Banking and financial consultant Dr. Richmond Akwasi Atuahene has revealed a staggering financial discrepancy in the country’s remittance flows, leading to a significant loss of forex to the country.
He reveals that about $8 billion in remittances were not accounted for in Ghana’s official records in 2022 and 2023 alone. This, he says, was siphoned offshore and directly contradicts the country’s laws.
He terms this as “externalization” and it is the reaseon behind a wider, decade-long discrepancy of $7.33 billion between World Bank estimates of remittance inflows and official Bank of Ghana (BoG) figures, crippling the nation’s ability to stabilize its currency and economy.
The Stark Data Discrepancy: A Sign of Deeper Trouble
In a research work cited by The High Street Journal, he revealed that between 2014 and 2023, the World Bank reported that Ghana received $36.23 billion in diaspora remittances.
However, the Bank of Ghana’s own data for the same period reported only $28.9 billion which flowed through its 23 authorized dealer banks.
The Gap of $7.33 billion, Dr. Atuahene says its equivalent to roughly 70% of Ghana’s 2023 budget but remains officially unaccounted for over the decade.
The Culprits of the Externalization
Dr. Atuahene’s analysis, drawing directly from the Bank of Ghana’s own 2023 Annual Report and Auditor-General findings pinpoints the primary culprit for the surge in this gap.
He enumerates that Licensed Fintech companies handled $3 billion in 2022 and $5 billion in 2023 in remittances resulting in a total of $8 billion.
This $8 billion could not be traced to the Auditor General reports on Bank of Ghana’s Consolidated Foreign Exchange Receipts and Payments for those years. It also wasn’t reported by the traditional 23 authorized banks.
The report states unequivocally that the $ 8 billion has been externalized by the Fintech Companies in breach of Section 15.3 of Foreign Exchange Act 2006 Act 723. This means the funds were likely held outside Ghana in foreign accounts (“overseas Nostro Accounts”) instead of being surrendered to the BoG or channeled through the formal banking system.
Dr. Atuahene further draws a direct and alarming parallel to Nigeria, where the Presidential Committee on Fiscal Policy found that 90% of estimated 2023 remittances never entered the country.
The Impact
This massive externalization isn’t just an accounting error; it has had profound, tangible consequences for every Ghanaian. The financial consultant says it had significant impact on the rest of the local currency. The loss of billions in hard currency inflows directly contributed to the severe depreciation of the Ghanaian Cedi. Remittances are a crucial source of stable forex to support the currency.
The keeping of the forex outside the country, meant this vital support was absent when Ghana needed it most exacerbating the currency crisis and fueling inflation.
The situation also deepened Balance of Payments (BoP) Crisis. The report highlights remittances as essential for curtailing any Balance of Payment crisis and financing essential imports. The externalized $8 billion deprived Ghana of the forex needed to pay for critical goods like fuel, medicine, and machinery, worsening the BoP deficit and import shortages.
Over the past decade, officially recorded remittances amounted to $28.9 billion, surpassing the combined forex inflows from cocoa ($18.92bn) and surrendered gold ($7.6bn) yet the widespread externalization of funds weakened Ghana’s economic resilience. These untracked billions represented missed opportunities for building stronger national savings, boosting investment, and reinforcing the country’s forex reserves, which are essential for withstanding external economic shocks.
Moreover, the inability to capture the full scale of remittance inflows eroded the effectiveness of the Bank of Ghana’s monetary and exchange rate policies, as these were often based on incomplete data. The diversion of remittance funds offshore also translated into lost development opportunities, depriving the local economy of resources that could have supported household consumption, education, healthcare, housing, and small-scale enterprises.
Urgent Calls for Action
Dr. Atuahene is calling for urgent reforms to address the leakage of remittance inflows. He demands a comprehensive regulatory overhaul, urging a review of the Payment Service and Systems Act 2019 and BoG guidelines to ensure full compliance with the Foreign Exchange Act 2006, particularly by Fintechs.
He also insists the Bank of Ghana rigorously enforce Section 15 of Act 723 by tracing and capturing all remittance forex and holding offenders accountable with stiff penalties, including possible jail terms.
Additionally, he proposes the development of a national strategy led by the Ministry of Finance, BoG, and the Foreign Affairs Ministry, in collaboration with development partners like the World Bank. This strategy should explore sustainable ways to harness the full potential of remittances, including innovative tools like Diaspora Bonds to attract externalized funds for national investment and development.
The Bottomline
According to Dr. Atuahene, Ghana’s remittance story is one of immense potential tragically undermined by systemic leakage. The $8 billion externalized via Fintechs in just two years is not just a missing statistic; it represents stolen stability, lost development, and a primary contributor to the economic hardship endured by Ghanaians.
For Dr. Atuahene, closing this multi-billion dollar loophole and capturing every dollar sent home is now critical for the nation’s financial survival and future growth. The vanishing act of these vital funds must end.
