Remittance inflows from the United Kingdom to Ghana have declined sharply, prompting the Bank of Ghana (BoG) to intensify efforts to redirect diaspora funds from consumption toward long-term, productive investments.

Governor of the Bank of Ghana, Dr Johnson Asiama, revealed at the London–Accra Economic Growth Summit that the UK’s share of Ghana’s total remittance receipts has dropped to 17.5 per cent, compared to about 28 per cent during the same period in 2024. While the UK remains one of Ghana’s most important remittance corridors, he said the decline underscores the need for more structured and incentive-driven diaspora engagement.

According to Dr Asiama, remittances from the UK between January and September fell significantly year-on-year, despite their continued importance to foreign exchange inflows and macroeconomic stability. He described remittances as a structurally important and counter-cyclical source of foreign exchange, especially amid global economic uncertainty and tighter financial conditions.

The BoG Governor noted that while diaspora inflows have traditionally supported household consumption and helped stabilise the balance of payments, the central bank is now prioritising policies that channel these funds into investments capable of driving sustainable growth. He said strategically deployed remittances could support small and medium-sized enterprises, housing development and agricultural modernisation, while also creating jobs through skills and knowledge transfer.

As part of measures to reverse the decline and scale up inflows from the UK, Dr Asiama said the Bank of Ghana is exploring instruments such as diaspora bonds, collective investment schemes and other capital market products that would allow Ghanaians abroad to invest through transparent and well-regulated platforms.

He also announced that the Bank’s regulatory sandbox is open to fintech firms, encouraging innovation in areas such as tokenised investment products that directly link diaspora savings to opportunities in Ghana. According to him, deepening capital markets remains a key policy priority, as stronger domestic debt and equity markets reduce dependence on short-term capital flows and improve resilience to external shocks.

Dr Asiama further disclosed that the BoG is implementing foreign exchange market reforms aimed at improving liquidity, transparency and investor confidence, noting that stronger diaspora participation through formal investment channels would complement these reforms and support stable FX inflows.

He added that the central bank, in collaboration with the Ministry of Finance, will roll out a National Remittance Strategy later this year, alongside a diaspora roadshow to deepen engagement with Ghanaians abroad.

Describing the London–Accra initiative as a strategic platform, Dr Asiama called for collaboration among financial institutions, fintechs, development partners and diaspora leaders to transform remittances from simple transfers into engines of economic growth.