As the holiday season approaches, remittance flows to Ghana are set to surge, with many Ghanaians living abroad prioritizing financial support for their families back home.
This annual tradition, particularly significant during Christmas, plays a crucial role in strengthening family bonds and supporting the local economy.
Remittance companies are gearing up for their busiest period of the year, driven by increased demand during the festive season.
Darryl Koku Mawutor Abraham, Head of Taptap Send Africa – a leading money transfer company, highlighted the seasonal trends contributing to the spike.
“In January, you see a reduction in money sending, but December—Christmas season—is by far the send season for Ghana specifically. Around this time, we typically see about a 20 percent bump in transfers. This trend has been consistent over the last three years, and this December is no different,” he explained.
With ongoing exchange rate volatility and inflationary pressures, remittance inflows provide a vital cushion for Ghana’s economy.
Abraham emphasized their significance, stating, “Ghana receives about $4.7 to $5 billion annually in remittances. With Ghana’s GDP at approximately $76 billion, this contributes around 6 percent to the economy.”
The seasonal influx of remittances not only supports households during the festive period but also reinforces Ghana’s economic resilience amid global uncertainties.
