Around 3 million people all over the world are estimated to be of Ghanaian descent. This global network of Ghanaians, also referred to as Ghana’s diaspora, has proven to be a vital source of national development, impacting the country in so many ways it’s hard to imagine.
The money transfers they send their families, investments, and cultural exchanges have played a pivotal role in bridging economic and cultural gaps, encouraging economic growth, and strengthening Ghana’s global connections.
Let’s take a look at how Ghana’s Diaspora has contributed to the country’s development, both economically and culturally.
Ghana’s Diaspora: A Global Community
Ghana’s diaspora is far-reaching, with an estimated 3 million Ghanaians living abroad, according to Connecting Diaspora For Development. They live primarily in the United States, however there are important communities in the United Kingdom, Canada, Germany, and other parts of Europe.
Whether it’s students pursuing higher education, professionals working in various sectors, or families seeking better opportunities, the diaspora maintains a strong connection to Ghana through money transfers, investments, and cultural engagements.
Understanding the influence of this diaspora is key to appreciating the global reach of Ghana. You’ll notice that many of the country’s business initiatives, especially in business and infrastructure, are often fueled by Ghanaians who have returned from abroad or those who continue to support the country from overseas.
Remittances: A Lifeline for the Economy
One of the most significant ways the diaspora contributes to Ghana’s development is through remittances. These are financial transfers sent back to Ghana by individuals living abroad, often to support their families or invest in businesses. According to the World Bank, Ghana received a staggering $3.8 billion in remittances in 2020, making it one of the largest recipients of remittances in Africa. These financial inflows accounted for approximately 6.3% of Ghana’s GDP in the same year.
For many Ghanaians, particularly those in rural areas, remittances are a lifeline. They help finance education, healthcare, and housing, improving living standards and reducing poverty. It’s eye-opening to see how these funds empower families to send their children to school, afford better healthcare, and even improve their homes.
Remittances as a Stable Source of Foreign Exchange
Beyond their direct impact on households, remittances provide a stable source of foreign exchange for Ghana. This is crucial for stabilizing the country’s currency, reducing inflation, and bolstering foreign reserves.
By ensuring a steady flow of foreign currency into the economy, remittances help Ghana attract more foreign investments, further promoting economic growth. For an expat, this means that Ghana’s economic stability, especially in terms of currency exchange rates, is partly driven by the consistent inflows from the diaspora.
Economic Growth and Job Creation
Remittances also stimulate entrepreneurship and small business growth. Many Ghanaians use remittances to start or expand small and medium-sized enterprises (SMEs), which are the backbone of the economy. You’ll likely come across small businesses—shops, restaurants, or service providers—that are funded by relatives living abroad. These SMEs not only create jobs but also spur local economic activity, benefiting entire communities.
Moreover, remittances often finance infrastructure projects like the Marine Drive in Accra, including the construction of homes, roads, and utilities, which enhances the quality of life for many Ghanaians. This development is especially evident in rural areas, where such investments can have transformative impacts.
Investments: Diaspora-Driven Development
While remittances provide immediate financial support, diaspora investments drive long-term economic development. Many Ghanaians abroad have invested in sectors such as agriculture, manufacturing, technology, and real estate.
The flourishing of industries supported by diaspora investments is very extensive. One example is the booming real estate sector in Accra, where modern apartments and office complexes are being developed by Ghanaians who live abroad but want to give back to their country. Such is the case of Greenviews Residential, our super modern apartment complex in Accra.
These investments not only create jobs and boost the economy but also contribute to Ghana’s infrastructure development. The diaspora’s role in funding the construction of schools, hospitals and healthcare services, and other public facilities has been invaluable, improving the quality of life and education for Ghanaians across the country.
This tangible connection between the diaspora and national progress offers an inspiring example of how Ghanaians abroad remain deeply involved in their homeland’s future.
Ghana Diaspora Cultural Exchange: Preserving and Promoting Ghanaian Heritage
Ghana’s diaspora has also played a critical role in preserving and promoting the country’s rich cultural heritage on a global scale. Many diaspora communities organize cultural events, establish Ghanaian cultural centers, and continue to practice traditional customs.
In fact, the global recognition of Ghanaian music, dance, and cuisine is largely due to the efforts of the diaspora. Internationally renowned musicians such as Sarkodie, Stonebwoy, and Fuse ODG have roots in the diaspora and have used their platforms to promote Ghanaian music around the world. Similarly, Ghanaian cuisine is gaining popularity globally, with dishes like jollof rice and fufu becoming more widely recognized.
Moreover, the diaspora helps preserve Ghana’s languages and customs. Many Ghanaians living abroad teach their children traditional languages such as Twi, Ga, or Ewe, ensuring that these languages are passed down to future generations. The cultural exchange between Ghana and its diaspora thus helps maintain a strong national identity while also showcasing Ghana’s culture to the world.
Even some of the most famous Ghanaian athletes in the diaspora have made their country proud by excelling in their disciplines and representing values of sportsmanship.
Brain Drain vs. Brain Gain
While the migration of skilled professionals abroad can sometimes lead to a phenomenon known as “brain drain,” where the country loses talent, Ghana is increasingly benefiting from what is known as “brain gain.” This refers to the return of diaspora professionals who bring with them new skills, global connections, and innovative ideas.
For instance, many Ghanaians who have studied or worked abroad return home to start businesses, launch development projects, or take up leadership roles in various sectors. There is a growing number of returnee entrepreneurs who are using their international experience to contribute to Ghana’s development, fostering a culture of innovation and growth.
Additionally, the diaspora’s global networks facilitate international partnerships, enabling Ghanaian businesses to access new markets and resources. These connections are invaluable for driving development, especially in sectors such as technology and healthcare, where international collaboration can lead to breakthroughs.
Government Initiatives: Strengthening Diaspora Engagement
Recognizing the importance of its diaspora, the Ghanaian government has implemented several initiatives to strengthen this relationship. The Year of Return in 2019, which marked 400 years since the first enslaved Africans arrived in the Americas, invited members of the African diaspora to reconnect with their roots in Ghana.
This initiative, followed by Beyond the Return in 2020, continues to encourage investment, tourism, and cultural exchange between Ghana and its global diaspora.