Understanding Remittances in Eritrea: An Exploratory Study

Authors

Fikresus Amahazion, College of Arts and Social Sciences, Adi Keih, EritreaFollow

Abstract

Migration has been characterized as a fundamental component of the human experience, and today there are several hundred million international migrants around the world. Although migrants leave their home country, they maintain links, particularly through remittances. Economic remittances supplement the domestic incomes of millions of poor families and are vital for many developing countries. This paper explores economic remittances into Eritrea, examining the particular trends, amounts received, and how remittances are generally consumed. Additionally, the paper explores general perceptions about remittances and their impact upon society in Eritrea. Based on interviews and focus group discussions with individuals and households across Eritrea, as well as discussions with government sources, this paper presents important findings that help to clarify understandings of remittances in Eritrea. For Eritrea, a low-income, developing country, remittances constitute an important part of the economy and source of foreign exchange. Furthermore, they are a key source of income for many individuals and households. Remittances to Eritrea are mainly sent to family and relatives, and although they may be transferred via several different mechanisms, informal channels are predominantly used. Results also suggest that recipients do not tend to utilize remittances for productive investment expenditures. Generally, perceptions and views toward remittances are mixed, with both positive and negative perceptions being held and expressed.

Recommended Citation

Amahazion, Fikresus (2019) "Understanding Remittances in Eritrea: An Exploratory Study," International Journal of African Development: Vol. 5: Iss. 2, Article 3.
Available at: https://scholarworks.wmich.edu/ijad/vol5/iss2/3