An economist is urging Ghana’s policymakers to build more reliable and structured channels for directing diaspora remittances into long-term investment, warning that the current pattern of funnelling these funds into consumption is limiting their broader economic impact.
Sylvester Adetor, speaking in an interview with Asaase Radio, said Ghana’s Remit2Invest initiative signals an important transition from short-term household spending toward sustainable capital formation, but stressed that the shift requires deliberate institutional action to succeed.
Ghana recorded approximately $7.8 billion in remittance inflows in 2025, a figure confirmed by the Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, at a diaspora roundtable in Virginia, United States, on April 19. The inflows represented roughly six percent of Gross Domestic Product (GDP) and surpassed foreign direct investment (FDI) for the first time, cementing the diaspora as the country’s largest source of external financing.
Adetor acknowledged that remittances continue to serve essential household needs, covering housing, education, and healthcare, but argued that their full economic potential remains untapped unless redirected into productive sectors. He pointed to countries such as Lebanon, Nepal, and El Salvador as examples where diaspora inflows have played a structurally stabilising role in national economies.
He said channelling remittances into structured financial instruments, including diaspora bonds and development securities, could deepen Ghana’s capital markets and unlock financing for infrastructure and private sector growth.
On macroeconomic conditions, Adetor noted that relative stability of the Ghanaian cedi amid global pressures presents a positive signal for diaspora investors. He said prudent monetary policy and exchange rate management by the BoG are helping to sustain investor confidence, adding that stable currency conditions strengthen the long-term credibility of investment flows and reduce reliance on short-term external borrowing.
However, he cautioned that attracting diaspora investment depends heavily on institutional credibility. Transparency, accountability, and predictable returns are essential to building trust among investors, he said.
Adetor concluded that aligning remittances with structured investment opportunities, supported by continued currency stability, presents a significant pathway for Ghana to build economic resilience and achieve sustainable growth.
