Darryl Mawutor Abraham, Growth Director for Taptap Send Africa, has called on the Ghanaian government to prioritize remittances as a key driver of economic growth and to create a more conducive environment to enhance these inflows.
Speaking at a media engagement on December 16, Mr. Abraham emphasized that remittances have a more significant impact on Ghana’s economy than Foreign Direct Investment (FDI). He noted that while FDI has been declining in recent years, remittances have remained a stable and vital source of foreign exchange.
“What remittance does for Ghana is far higher than FDI. Remittance is playing a far bigger role than FDI. As a country, we should encourage more of that because remittance would continue to outshine FDI and have a far greater impact,” he stated.
According to the World Bank, Ghana received $4.6 billion in remittances in 2023, making it the second-largest recipient in sub-Saharan Africa after Nigeria.
In contrast, FDI flows to sub-Saharan Africa were nearly 1.5 times smaller than remittance flows in the same period, highlighting the relative stability and importance of remittances.
Mr. Abraham urged the government to engage more actively with remittance companies to foster growth in the sector, similar to the efforts made to attract foreign investors. “We’re leaving remittances to grow on their own, but we should be engaging with remittance companies to make the environment better and drive more inflows,” he advised.
He also highlighted the need for regulatory reforms to support remittance companies and startups. He compared Ghana’s policies to those of Nigeria, which allow companies with valid UK licenses to begin operations immediately.
“In Ghana, there’s a law that requires remittance companies to have traded for over three years before they can operate. This doesn’t support startups,” he explained.
Mr. Abraham argued that a more flexible regulatory environment, clear guidelines, and partnerships with industry players would attract new entrants into the remittance space, leading to increased inflows. Mr. Abraham further urged the government to take deliberate steps to harness the full potential of remittances.
