According to the latest edition of the World Bank’s “Migration and Development” report, remittances from Moroccans around the world have increased significantly, reaching a new record level in 2023.
The report indicates that MRE remittances to Morocco increased by 5.2% to reach $11.8 billion in 2023, making the Kingdom the second largest recipient of these remittances in the Middle East and North Africa (MENA) region, after Egypt.
Remittances to Morocco have consistently outpaced foreign direct investment (FDI) flows and are a significant source of revenue for the Moroccan economy, accounting for 8.2% of the country’s GDP. The pace of MRE remittances remained strong throughout 2023, particularly after the earthquake that hit the Al Haouz region. This is consistent with studies highlighting the countercyclical nature of remittance flows, which tend to increase following natural disasters in migrants’ countries of origin.
Looking ahead, the World Bank report says diaspora remittances to the MENA region will be affected by the difficult situation facing oil-importing countries, such as Morocco.
Furthermore, the report highlights that flows to the region are expected to grow by 4.3% in 2024. The average cost of sending $200 within the region stood at 5.9% in 2023, down from 6.7% the previous year.
Morocco has made substantial progress in recent years to improve remittance channels, financial inclusion, and access to digital transfers. These efforts are in line with the implementation of the new development model, one of the objectives of which is to consolidate the role of remittances as a driver of economic and social development.
But despite this progress, challenges remain, according to the report, to further reduce the costs of remittances to meet the UN Sustainable Development Goal (3%), increase awareness and adoption of digital methods of remittances, and expand access points, particularly in rural areas.
It should be noted that in its latest report, Bank Al-Maghrib is counting on a new record of transfers from the Moroccan diaspora for 2024, at 117.5 billion dirhams, an improvement of 1.9% compared to 2023. Better still, this upward trend would continue in 2025 with transfers expected to be around 123.7 billion dirhams (+5.3%).
