Ghana Targets Investment Growth as Diaspora Remittances Reach $7.8bn
- Apr 21
- 2 min read
Ghana recorded a sharp rise in diaspora remittances in 2025, with inflows hitting approximately $7.8 billion, more than double the previous year’s figure and significantly higher than foreign direct investment (FDI). Authorities say the trend underscores the growing financial influence of Ghanaians abroad but warn that much of the money is still being used for consumption rather than long-term economic development.
Governor of the Bank of Ghana, Johnson Pandit Asiama, disclosed the figures during a diaspora engagement held in Virginia, United States. He described remittances as a vital source of foreign exchange, noting their role in stabilising the economy and connecting Ghana to global financial markets.
Despite the strong inflows, the central bank is pushing for a shift in how these funds are utilised. Asiama emphasised the need to redirect diaspora earnings into productive sectors, arguing that remittances should evolve from short-term household support into sustainable investment capital.
Officials highlighted concerns that informal transfer channels continue to divert a portion of remittances away from the formal financial system, limiting their full impact on national accounts. The central bank is therefore encouraging the use of regulated channels, promising improved cost efficiency and security for senders.
At the forum, participants raised questions about transparency and the overall investment climate, with some expressing doubts about whether remitted funds are effectively contributing to development. Others pointed to issues of trust, governance, and accountability as major barriers to committing larger investments.
The Chief Executive Officer of the Ghana Investment Promotion Centre, Simon Madjie, acknowledged that while diaspora inflows now surpass FDI, a significant portion remains outside structured investment channels. He urged Ghanaians abroad to adopt a more professional approach to investing, rather than relying on informal arrangements.
Discussions also touched on the need to engage younger, second-generation diaspora members, whose financial habits differ from earlier migrants. Officials warned that without targeted strategies, remittance flows could decline over time as emotional and family ties weaken.
To address these challenges, the central bank is planning new financial instruments, including diaspora bonds and foreign currency investment products, alongside digital payment solutions aimed at simplifying cross-border transactions.
Authorities say sustained engagement, improved governance, and investor-friendly policies will be critical if Ghana is to convert its growing diaspora inflows into a reliable engine for long-term economic growth.
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