The World Bank has indicated that it expects global remittances to the Horn of Africa region, especially Somalia, to drop substantially because of COVID-19.
According to the World Bank, the drop is likely to be by as much as 23.1 percent. Consequently, it expects remittances to be around $37 billion in 2020.
Somalis working in the Middle East and the West often send close to $2 billion in remittances to Somalia each year.
Without that much money being pumped into the economy, the whole country could face huge financial and social problems.
COVID-19 has caused loss of jobs globally. Somalis, who form a substantial segment of the migrant workers wherever they are, have suffered loss of jobs and regular income.
Without a job or regular income, Somalis are incapable of sending remittances back home.
In 2019, remittances to the East African region dropped by only 0.5% to $48 billion. This year’s expected drop could be the worst in a long time.