Experts Question Ghana’s Use of Remittances for Development

Accra: Stakeholders within the migration industry have argued that migration can fuel development but only when governments move beyond rhetoric and create trust-based, structured investment systems that make remittances truly transformative. This was the central message emerging from the latest edition of "Ma Yen Nkasa - Let's Talk," organised by the Konrad Adenauer Stiftung (KAS) Ghana Office, under the theme 'Migration as Development Policy? Can Remittances and Mobility Drive Sustainable Development?'

According to Ghana Web, speaking at the forum, Festus Owooson, Immigration and Operations Manager at Globetrotters Legal Affairs, argued that while remittances already play a critical role in household survival, their developmental impact remains limited due to weak policy frameworks and persistent mistrust between governments and the diaspora. Owooson pointed to diaspora bonds as a widely used development financing tool in other countries, noting that Ghana has periodically issued similar instruments. However, he questioned whether these bonds genuinely attract Ghanaian migrants.

Owooson further elaborated on the impact of frequent policy changes and political transitions, which have weakened confidence among contemporary diaspora communities. Despite attractive interest rates, these communities remain hesitant to commit to long-term investments. He highlighted that the lack of policy consistency, due to changes in government every four or eight years, hinders the building of trust necessary for such investments. He also mentioned that older or 'classical' diaspora groups might be more inclined to invest but stressed the need for credible data and long-term policy stability.

While remittances are often used for consumption, Owooson emphasised that short-term financial instruments such as Treasury bills and regulated investment schemes could allow families to meet daily needs while enabling governments to channel funds into productive sectors. He cited examples from countries like Mexico and the Philippines, where governments match diaspora funding to transform small projects into significant developments.

Andreas Berding, Head of the Ghanaian European Centre at GIZ, added to the discussion by stressing that migration-development policies cannot rely solely on external partners. Using Germany as an example, he explained that language barriers significantly increase migration costs and reduce competitiveness unless countries of origin take proactive steps. Berding proposed targeted investments in selected TVET institutions, including employing permanent foreign language teachers, to better prepare Ghanaian workers for international labour markets.

Berding also questioned Ghana's heavy focus on high-level diaspora summits, arguing that implementation has lagged behind dialogue. He advocated for more proactive action to implement these policies effectively rather than merely holding summits. Anna Wasserfall, Country Representative of KAS Ghana, framed the discussion as a continuation of earlier conversations on return migration and reintegration, noting that migration presents both opportunities and risks. She stressed that the goal of Ma Yen Nkasa is not to promote a single narrative but to provide balanced, evidence-based perspectives to inform public and political debate.