Moroccan Diaspora Sends Record $12 Billion in Remittances, Boosting Economy

MRE transfers, the other oxygen that promotes Morocco’s development. From two million at the beginning of the 2000s to 5.1 million according to the consular registers, or 6.5 million (including the unregistered) according to the Minister of Foreign Affairs, African Cooperation and Moroccans Residing Abroad, the MREs have become a main source of financing for the kingdom. The money transfers are proof of this. Last year, they sent nearly $12 billion in remittances to Morocco, the equivalent of 8% of the national GDP, reports Jeune Afrique.

"Sums that, although constantly increasing, could be better invested. Only about 10% of the total money sent by MREs each year would be invested productively in the economy, while 20% feed savings accounts, giving financial leeway to banks, which participate in the financing of investments. These funds also account for 20% of the kingdom’s banking resources," notes the magazine, pointing out that remittances from MREs have increased by no less than 444% since 2000, almost twice as fast as the number of MREs.

This increase in the amount of transfers is explained by several factors. There is the age and time spent abroad. The multiplication of agencies and solutions for cross-border money transfers is also a major factor. Two-thirds (66.9%) of MRE remittances were made through money transfer agencies, such as Western Union, MoneyGram, Wafa Cash, compared to only 18.2% through traditional banks, according to a study by the Moroccan High Commission for Planning, published at the end of 2022.

More than eight out of ten MREs send an average annual amount of more than $4,777, or more than $400 per month, the publication states. And it explains: "Logically, the main countries from which the most transfers in value originate are those that host the largest MRE communities. This is true for the top three: France, Spain and Italy. But this mechanism does not necessarily prove to be correct for all countries. Saudi Arabia, for example, ranks fourth among the countries sending transfers, even though it ranks ninth in terms of MRE population, with about 50,000 Moroccans in 2023."

MREs also contribute to the development of Moroccan tourism. In total, more than 3.76 million MREs came to spend a stay in the country between June and September 2024. Ultimately, they have become major players in Morocco’s development.