ECONOMIC IMPACT OF MIGRATION ON AFRICA

In my last post, the economic effect of migration on Europe economy was highlighted. In this post, I will be discussing on how migration has affected African economies in both positive and negative ways. These effects may vary based on a wide range of factors, such as the home nation's policies, the migrants’ skills, and the policy environment. Here are some ways that migration has affected the economy of Africa positively and negatively:

Remittances: Transfer of money flowing back to migrant families in Africa constitute one of migration's important benefits. Sending money back home have the potential to reduce poverty, boost the local economy, and pay for healthcare and education. In 2020, the World Bank estimated that remittances to Sub- Saharan Africa amounted to over $40 billion, amounting to a huge source of income. The women contribute as much as men in remittances. These remittances are largely used for productive investments rather than consumption. Also, for the Country, diasporas provide technology, knowledge, finance, and trade. Cash from abroad can be a wealthy source of income, boost a country credit worthiness and balance of payment statistics.

Human capital: By exporting human capital and giving people the chance to gain new experiences and skills, migration can also have a positive impact on the African economy. This can attract foreign direct investment, improve the standard of the labor force in the area, and develop new industries. Due to decrease in labour supply those who are unemployed are employed and there might be increase in salary for workers doing the job. Since there are fewer people to do the job those that are left can charge more to do the job.

Brain Drain: The migration of young, educated individuals to Europe may cause a "brain drain" for African    nations, leaving them short-staffed with trained workers. When educated individuals depart from their native nations in quest of more favorable circumstances. It impedes these countries' economic progress, prolonging poverty cycles and impeding development efforts. Africa is losing Scholars, Entrepreneurs, youths to migration every year. For example, in Nigeria large number of health care workers are leaving the country, this large migration from this highly needed sector is making things worse.

Remittances as a substitute for labour: In some household having a family living abroad and sending them money, they might have a tendency not to work because of the additional resources coming into the household. Some might reduce the number of hours they work or change the type of job they do. This change could be either positive or negative depending on the situation or context matters.

Child Labour: This could either increase or decrease depending on the circumstances. If members of the household leaves and are not able to send remittance home when needed or expected this could increase child labour as the younger ones will go out there and source for livelihood on the other hand, if a member of the household travels abroad and send remittances back home, the younger ones are left off work and concentrates on schooling.

When Africa migrants relocate from their home country to a foreign land, their desire to leave behind unpleasant factor often clouds their judgment, making it difficult for them to foresee the challenges of adjusting to a new environment. It is widely recognized that immigrants face many challenges upon arriving in a foreign country. These challenges include, but are not limited to, financial difficulties, difficulty integrating into the dominant culture of the new nation, and, most importantly, challenges finding a job quickly enough to support themselves.  

In conclusion, emigration in Africa has affected its economy both positively and negatively. The decrease in skilled emigrants has had a toil on some sectors and steps needs to be taken by the governments in Africa to influence favourable policies to reduce the number of migrants leaving for diaspora and encourage individuals to stay and those in diaspora to come home and build their country.