Rwandans living and working abroad have sent remittances worth $469 million to the country, representing a 3.9 per cent share of Gross Domestic Product in 2022.
A remittance is a non-commercial transfer of money by a foreign worker, or a member of a diaspora community for household income in their home country.
According to the World Bank report on global remittances inflows and outflows, Diaspora contribution to Rwanda's economy has seen a steady rise trend over the past five years.
In 2021, Rwandan Diaspora sent $391 million into the country increasing from $215 million in 2017. When it comes to outward remittances, Rwandans in the country sent $73 million to migrants in 2021, a drop from $94 million in 2017.
The data is collected from commercial banks, money transfer agents like Western Union, Money Gram, WorldRemit, and other informal transfers.
"Besides the determination of migrants to help their families back home, a gradual reopening of various sectors in host countries' economies expanded many migrants' income and employment situation. On the other hand, rising prices adversely affected migrants' real incomes and their remittances," reads part of the report.
Remittances growth in Sub-Saharan Africa surged 16.4 per cent to $50 billion during 2021, the strongest increase since 2018, according to World Bank, however, with the concurrent crises affecting the global economy in 2022, the gains are likely to be held to 5.2 per cent this year, and to 3.9 per cent in 2023.
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"Remittance outturns will depend on the balancing of increasing needs for support from the African overseas labour force, and the availability of incomes in host countries to be remitted."
Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries, the report shows.
For instance, Rwandan diasporas have contributed to different developmental projects such as the Cana Challenge (for extending solar energy to needy families), and Connect Rwanda (a campaign to drive smartphone penetration in the country), among others.
According to the Ministry of Foreign Affairs and International Cooperation, there are currently up to 68 Rwanda Community Abroad associations across the globe: 32 in Africa, 22 in Europe, 8 in Asia, 4 in America, and 2 in Oceania.
