UK Remittance Share Falls to 17.5% as Bank of Ghana Pushes for New Diaspora Investment Strategy

Remittances from the United Kingdom remain a key source of foreign exchange for Ghana, but new figures from the Bank of Ghana (BoG) show that inflows from this corridor are slowing — a shift that officials say requires urgent policy attention and a renewed focus on productive diaspora investment.

According to the central bank, transfers from the UK made up about 17.5% of Ghana’s total remittance inflows between January and September 2025. Though still substantial, this represents a major drop from the same period in 2024, when the UK accounted for roughly 28% more than a quarter of all remittances received.

Addressing participants at the London–Accra Economic Growth Summit held at Bank Square in Accra, BoG Governor Dr. Johnson Asiama noted that the data underscores both the critical role of the Ghanaian diaspora and the need to transform how their contributions are utilised.

“Diaspora inflows must go beyond consumption and be intentionally mobilised for long-term, productive investment,” Dr. Asiama said.

He acknowledged that remittances are already vital to household welfare, Ghana’s balance of payments, and overall macroeconomic stability. However, he emphasised that their economic impact could be far greater if channelled more strategically.

According to Dr. Asiama, diaspora funds when guided into structured programmes  can support small and medium-sized enterprises, expand affordable housing, modernise agriculture, and generate sustainable jobs for young people through targeted skills and knowledge exchange.

He described remittances as a “structurally important and counter-cyclical source of foreign exchange,” especially at a time when global financial markets are unpredictable.

Even with the recent decline in the UK share, Dr. Asiama said there remains “significant potential to boost inflows from this corridor” through the right policy incentives and investment-friendly frameworks.

He revealed that the Bank of Ghana is working to improve payment systems and strengthen regulatory structures to ensure remittance transfers remain efficient, transparent, and supportive of exchange rate stability — ultimately positioning diaspora capital not just as relief for households, but as a powerful driver of national development.