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Migrant Labour Remittances in Africa and their Developmental Impact

Raj Bardouille, Visiting Fellow, Institute for African Development, Cornell University
rajbardouille@yahoo.com

Studies on migration in Africa (internal and external) have generally focused on trends in movements of people within and outside their countries of origin, the causes and consequences of such human resource flows, issues and problems of adaptations of migrants , etc. A much neglected area of research is remittances and migration in Africa. Historical, cultural and linguistic bonds have produced a strong flow of skilled and unskilled migrants from African countries to their former colonies. Wars and civil strife and the associated political and economic instability and uncertainties are growing drivers of African migration.
The paper notes that significant improvements have been achieved in recent years in many African countries in the economic and political spheres, however, the development challenges facing the continent remain daunting, requiring massive inflows of investment resources (domestic and external) coupled with putting in place appropriate policies to address such challenges. A potentially important external source of finance is African migrant worker remittances. The paper argues that as migration from Africa is generally on the rise, remittances are likely to remain significant and constitute an important and reliable source of external resources for many African countries. This calls for greater attention in studies of migration and discussions of remittances.
Against the backdrop of migration patterns and trends in and remittance flows to Africa, the paper will examine the developmental effects (macro- and micro-economic effects) of remittances on the receiving countries and households/ communities. It will also identify some of the bottlenecks and obstacles, including weak financial infrastructure related to remittances, which tend to reduce the potential developmental effects of such financial flows. The paper will particularly focus on the Diaspora and ways to more actively engage Diaspora individuals and groups in Africa’s development by tapping and mobilizing their financial (in addition to remittances), human, social and political capital, thus turning the “brain drain” into the “brain gain”