Africans living outside of Africa have a significant impact on the continent through the personal remittances they send. In fact, these remittances are much larger than foreign direct investment and foreign aid. According to the International Fund for Agricultural Development (IFAD), migrant workers sent over $95 billion in remittances to and within Africa in 2021, benefiting more than 200 million family members, most of whom live in rural areas. Nigeria alone received $23.8 billion in remittances (Didia & Tahir, 2021), which is much higher than the $2.4 billion in foreign direct investment it received in the same year (UNCTDA, 2021). Moreover, remittances from the African diaspora increased by 6.2% in 2021, as the World Bank Group (2021) reported. These numbers demonstrate the committed support of Africans in the diaspora toward the economic growth of their home continent.

Although remittances play a significant role in the African economies, they face certain limitations. One of these challenges is that they require sustainable funding and are not easily scalable. Additionally, remittances can decrease the labor force and foster a culture of dependency, both of which hinder economic growth (Amuedo-Dorantes, 2014). Moreover, it is expensive to send money to Africa, with sub-Saharan Africa being the most costly region to send money to, recording an average total cost of 8.72 percent in the second quarter of 2021 (World Bank Group, 2021). However, there is an opportunity for African governments, multilateral organizations, financial institutions, and NGOs to collaborate and create an enabling ecosystem for financial innovation to reduce the cost of sending remittance