Diaspora remittances must be redirected into productive investment – Johnson Asiama 

The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has called for a deliberate policy shift to ensure that diaspora remittances are channelled into productive investment rather than being used predominantly for consumption.

Speaking at the London to Accra Diaspora Economic Growth Summit held in Accra, Dr Asiama said while remittances from Ghanaians living abroad continue to play a critical role in supporting households, their long-term economic impact remains limited if they are not structured to support enterprise development and job creation.

“Diaspora inflows must be harnessed beyond consumption and redirected into sustainable investments that support long-term economic transformation,” he said.

According to the BoG Governor, Ghana’s diaspora community represents a reliable source of capital that can be mobilised to finance small and medium-sized enterprises, expand housing, support agribusiness, and strengthen local value chains. He stressed that doing so would reduce overreliance on external borrowing and help build a more resilient domestic economy.

Dr Asiama disclosed that remittances from the United Kingdom accounted for 17.5 per cent of Ghana’s total remittance inflows between January and September 2025, a decline from 27.6 per cent during the same period in 2024. He said the figures underscore the need for targeted incentives to sustain and grow diaspora contributions.

He explained that the central bank is exploring innovative instruments, including diaspora bonds, structured investment vehicles, and enhanced remittance platforms, to make investment opportunities more accessible and transparent to Ghanaians abroad.

“Trust, predictability, and returns are key. When these are assured, diaspora investors are more willing to commit funds for the long term,” he noted.

Dr Asiama also highlighted the importance of collaboration between government institutions, financial institutions, and the private sector to create viable investment pipelines that align with national development priorities.

He said the Bank of Ghana remains committed to strengthening regulatory oversight to protect diaspora investments and ensure confidence in the financial system.

The Governor concluded by urging policymakers to view remittances not merely as social support flows, but as strategic capital that can drive inclusive growth, employment creation, and economic stability if effectively managed.