Money transfers sent by members of the African diaspora to their countries of origin reached approximately $124 billion in 2025, highlighting their growing importance in financing economies across the continent. According to the International Fund for Agricultural Development (IFAD) report Sending Money Home, these flows increased by 86% over the past decade, while Africa’s migrant population grew by around 32% over the same period.
This growth has made diaspora remittances a major source of financial support for millions of African households. An estimated 46 million African migrants currently live abroad, with more than half residing in another African country. This significant regional mobility also explains the importance of intra-African remittance flows.
However, the funds received are highly concentrated in a small number of major economies. Egypt ranks first, receiving approximately $41.5 billion in 2025, compared with $18.6 billion in 2016. Nigeria follows with $22.8 billion, ahead of Morocco with $13.7 billion, Ethiopia with $7.1 billion and Kenya with $5 billion. Together, these five countries received around $90.1 billion, representing nearly three-quarters of total remittances sent to Africa.
The importance of these transfers cannot be measured solely by their total value. In several African countries, remittances represent a significant share of economic activity. In 2025, they were equivalent to approximately 22% of GDP in The Gambia, and nearly 21% of GDP in Liberia, Comoros and Lesotho. In Cape Verde, remittances accounted for around 12% of GDP.
A significant share of these funds also reaches rural populations. IFAD estimates that approximately 34% of remittances sent to Africa, equivalent to nearly $42 billion, are directed toward rural areas. These resources help families cover everyday expenses, education and healthcare costs, while also helping them cope with economic difficulties.
Madagascar also benefits from these financial flows. The country received approximately $406 million in remittances in 2025. This amount represented around 10% of Madagascar’s exports and nearly 2% of its GDP. Remittance flows increased by approximately 36% compared with the reference period used in the report. The average cost of sending money to Madagascar was estimated at around 5.3% of the amount transferred.
Beyond directly supporting households, remittances can contribute to strengthening foreign-exchange reserves and supporting domestic consumption. Their role becomes particularly important for economies facing significant financing needs, limited access to international capital or insufficient export revenues.
The scale of these financial flows also highlights the importance of transfer costs. Reducing the fees charged on international money transfers would allow recipient families to receive a larger share of the money sent by their relatives abroad. Expanding digital financial services and developing more affordable transfer solutions therefore remain important challenges for maximizing the economic impact of the diaspora.
With $124 billion transferred to Africa in 2025, the African diaspora has become a major contributor to financial flows across the continent. For Madagascar and other African economies, the challenge now lies in making these transfers more accessible and affordable while creating conditions that can encourage part of these resources to contribute to investment and long-term economic development.
