Ghana Turns To Diaspora Bonds As UK Remittances Fall | By Dominick Andoh | The Bank of Ghana (BoG) is turning to diaspora bonds and other capital-market products in a bid to address a sharp decline in remittance inflows from the United Kingdom, one of the country’s most important sources of foreign exchange.
Dr Johnson Asiama, Governor of the Bank of Ghana, said the central bank is exploring the introduction of diaspora bonds, collective investment schemes and other regulated investment instruments to provide Ghanaians living in the UK with structured, transparent channels to invest in the domestic economy.
The strategy, he said, is aimed at stabilising remittance flows while shifting diaspora engagement from short-term consumption toward long-term, growth-oriented capital.
Remittances from the UK accounted for 17.5% of Ghana’s total inflows between January and September, down sharply from about 28% over the same period in 2024, according to data disclosed at the London–Accra Economic Growth Summit.
The decline has raised concerns about pressures on Ghana’s external financing position at a time of tighter global financial conditions.
Dr Asiama described remittances as a structurally important and counter-cyclical source of foreign exchange, noting that the fall in the UK corridor represents a significant shift given its historical role in supporting foreign-exchange reserves and smoothing balance-of-payments pressures.
Under the proposed approach, diaspora bonds and collective investment vehicles would channel remittance flows into small and medium-sized enterprises, housing, agriculture, and infrastructure, while also supporting job creation and productivity growth. Well-designed products could also encourage the transfer of skills and knowledge from Ghanaians abroad.
Dr Asiama noted that deepening diaspora participation through credible capital-market instruments will help keep the UK–Ghana remittance corridor open, resilient, and attractive, even amid global economic uncertainty, while strengthening the long-term developmental impact of diaspora funds.
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