Ghana Sees Drop in UK Remittances | By David Kwakutse
Remittance inflows from the United Kingdom to Ghana have declined sharply, underscoring mounting pressures on one of the country’s most important foreign-exchange corridors and prompting the Bank of Ghana to rethink how diaspora funds are mobilised and deployed.
The UK accounted for 17.5% of Ghana’s total remittance receipts between January and September, down from about 28% during the same period in 2024, according to Bank of Ghana Governor Dr Johnson Asiama.
The figures were disclosed at the London–Accra Economic Growth Summit, where policymakers and investors discussed strategies to deepen economic ties between the two countries.
While the UK remains a critical source of remittances, the decline highlights growing vulnerabilities in Ghana’s external financing position at a time of tighter global financial conditions. Remittances have long played a stabilising role in the economy, supporting household incomes, shoring up foreign-exchange reserves and helping to smooth balance-of-payments pressures.
“Remittances constitute a structurally important and counter-cyclical source of foreign exchange for Ghana,” Dr. Asiama said, noting that the fall in the UK corridor represents a significant shift given its historical contribution to inflows.
The central bank is now seeking to move beyond a remittance model dominated by consumption toward one anchored in long-term, productive investment. Officials say better-structured diaspora financing could support small and medium-sized enterprises, housing, agriculture and job creation, while also enabling skills and knowledge transfer from abroad.
As part of this pivot, the Bank of Ghana is exploring instruments such as diaspora bonds, collective investment schemes and other regulated capital-market products aimed at providing Ghanaians in the UK with clearer, more transparent channels to invest in the domestic economy.
The drop in remittances from a key corridor underscores the urgency of these reforms, as Ghana looks to diversify and stabilise external inflows amid an increasingly uncertain global environment.
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