The impacts of the global financial crisis on remitances in Eastern Africa

Abstract

The view that the relatively low economies of the sub-Saharan Africa may not be affected by the global economic and financial crisis due to their minimal integration to the world giants of the financial markets is no longer valid as the impact of the crisis has affected heavily the continent. It is believed that the global financial crisis will likely and substantially set back progress towards poverty reduction and the achievement of the Millennium Development Goals. It is predicted that Official Development Assistance (ODA) to Africa and the realization of standing commitments may have been put at risk in the near future. Even assistance for non-traditional donors, including remittances from African in the Diaspora may therefore likely become even more critical. The findings of this study reveals not only the resilient nature of remittances but also the increasingly prominent role it’s playing in boosting the foreign exchange earnings of their respective countries.