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Business & Economy

Ghana Moves to Turn $7.8bn Remittances into Engine for Jobs and Growth

Ghana is developing strategies with UNECA to integrate diaspora remittances into national planning, aiming to shift billions in inflows from household spending into productive investment, job creation, and sustainable economic growth.

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Ghana is intensifying efforts to integrate migration and diaspora remittances into its medium- and long-term development planning, as part of a broader strategy to drive job creation and accelerate sustainable economic transformation.

In 2025, the country received an estimated US$7.8 billion in remittances, representing nearly seven per cent of Gross Domestic Product (GDP), underscoring the growing importance of diaspora contributions to the national economy.

However, despite the significant size and resilience of these inflows, most remittances continue to be channelled into household consumption such as daily expenses, education, healthcare, and basic welfare needs, rather than savings, investment, or productive ventures that could expand the economy’s productive base.

Dr Audrey Smock Amoah, Director-General of the National Development Planning Commission (NDPC), has therefore emphasised the need to reposition diaspora resources as a strategic development asset.

In a speech delivered on her behalf by Mr Richard Tweneboah Kodua, Director of Research and Innovation at the NDPC, during a capacity-building workshop in Accra, she said the Commission had developed a practical toolkit in collaboration with the United Nations Economic Commission for Africa (UNECA) to help integrate diaspora contributions into both national and sub-national development plans.

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According to her, the initiative is designed to support policymakers and planning institutions to better capture, analyse, and deploy migration-related data in development planning processes.

She noted that approximately 1.7 million Ghanaians currently live abroad across more than 50 countries and territories worldwide. 

Their financial contributions, she said, continue to play a vital role in sustaining households, improving access to education and healthcare, and stimulating local economic activity across communities in Ghana.

“This presents a clear opportunity for us to better harness diaspora resources for sustainable development, job creation, and economic transformation,” Dr Amoah said in the statement.

She added that with the right policy frameworks and institutional coordination, remittances could move beyond consumption support to become a stronger driver of entrepreneurship, industrial growth, and national development financing.

The capacity-building workshop brought together key institutions involved in planning, statistics, labour, and local governance. 

Participants included representatives from the Ministry of Labour and Employment, Youth Development and Empowerment, the Ghana Statistical Service, the Bank of Ghana, and various Metropolitan, Municipal and District Assemblies (MMDAs).

The training focused on strengthening the capacity of institutions to mainstream migration dynamics and diaspora contributions into their respective development plans, while also improving coordination between national and local authorities.

It also provided technical guidance on how to use data-driven approaches to reflect migration trends in policy formulation and development budgeting.

Participants were further encouraged to explore innovative mechanisms for mobilising diaspora investment, including diaspora bonds, investment platforms, and partnerships that link remittance flows to productive sectors such as agriculture, manufacturing, and housing.

Mr Amadou Diop, Economic Affairs Officer at UNECA, highlighted that since 2024, the Commission had been working with six African countries, including Ghana, Comoros, Tunisia, and Egypt, to identify best practices for leveraging diaspora inflows to reduce poverty and strengthen economic resilience.

He explained that remittances remain one of the most stable external financial flows to Africa, often surpassing foreign direct investment and official development assistance in several countries.

However, he stressed that the developmental impact of these funds largely depends on how effectively governments create enabling environments that channel them into productive uses.

“The success of this initiative depends on active participation and commitment from institutions to ensure diaspora contributions are effectively translated into tangible development outcomes,” Mr Diop said.

He added that stronger collaboration between governments, financial institutions, and diaspora communities would be key to unlocking the full potential of migration for inclusive growth across the continent.

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