The wealth making up the economies of most countries comes from goods and services which citizens produce for domestic consumption and also income generated from exports. Many African countries have an additional substantial source of wealth: remittances from citizens who live abroad. Many Africans who emigrate to wealthier countries dutifully send money home to their African families on a regular basis.
In the case of Senegal, more than 70% of Senegalese who live overseas send money home. For their families in Senegal, these remittances make up more than 70% of the household income, and they add up to more than 7.6% of the country’s GDP. There has been a housing boom in recent years in the Senegalese capital Dakar, and around 30% of the money funding construction is thought to have come from remittances.
However the global financial crisis has severely affected the financial situation of African emigrants, and as a consequence they are sending less money home to Africa, and they are sending it less often. Whilst it is possible that the reduced flow of remittances could force African countries to improve their productivity, a more likely effect is that there will be a greater flow of “economic refugees” to the West.