Remittances to Africa overtake FDI

An United Nations report finds that remittances from Africans working abroad during 2000-2003 averaged about US$17 billion annually, while FDI flows averaged about US$15 billion during the same period. Official development assistance is still the main external resource flow for
Africa. The report highlights the need for reducing the cost of transmitting remittances to facilitate their transfer, and points out that the largest recipients of FDI have been countries with large mineral and petroleum reserves and growing natural resources industries.