Digital Remittances and Diaspora Finance

Abstract

This chapter examines the evolving architecture of digital remittances and diaspora finance in Africa, situating these flows within the broader framework of continental economic integration under the African Continental Free Trade Area (AfCFTA). With remittance inflows to Africa exceeding $96 billion in 2024, the chapter analyses how digital transfer technologies, blockchain-based platforms, and mobile money innovations are reshaping the cost structure, speed, and transparency of cross-border payments. It evaluates the persistent challenge of high transaction costs in Sub-Saharan African corridors and the role of FinTech disruptors in narrowing the gap toward the Sustainable Development Goal target of 3%. The chapter further explores diaspora investment channels, including diaspora bonds and equity platforms, and assesses their potential for productive capital mobilisation aligned with AfCFTA investment priorities. The chapter concludes with recommendations for integrating diaspora finance into continental development strategies.