The International Fund for Agricultural Development (IFAD) released a report highlighting the modest remittance inflows to Algeria from its diaspora community. In 2025, Algeria received $1.799 billion in remittances, a figure significantly lower compared to other North African countries. Egypt led the region with $41.517 billion, followed by Morocco with $13.657 billion, and Tunisia with $3.257 billion.
A comparison of remittance trends over the past decade reveals a concerning decline for Algeria. Between 2016 and 2025, remittances to Algeria decreased by 10%. In contrast, Egypt, Morocco, and Tunisia experienced substantial increases of 123%, 114%, and 79%, respectively. Algeria is the only North African country that has seen a decline in diaspora remittances during this period.
The IFAD report also underscores the significance of remittances in the economies of North African countries. For Egypt, diaspora remittances accounted for 57% of its exports in 2025, compared to 18% for Morocco, 12% for Tunisia, and only 4% for Algeria. This highlights the varying degrees of reliance on remittances among these nations.
The report further notes that Algeria and Ghana have dropped out of the top 5 African countries receiving diaspora remittances. They have been replaced by Ethiopia and Kenya. The top 5 recipient countries – Egypt, Nigeria, Morocco, Ethiopia, and Kenya – collectively received $90.1 billion in 2025, accounting for approximately 73% of total remittance inflows to Africa.
Egypt dominates the regional remittance landscape, with the country alone representing one-third of the total regional remittances. The IFAD report provides valuable insights into the trends and significance of diaspora remittances in Africa, emphasizing the need for countries to diversify their economies and reduce dependence on these inflows.
The decline in Algeria's diaspora remittances over the past decade raises concerns about the country's economic prospects. With a large diaspora community, Algeria's ability to attract and retain remittances is crucial for its economic growth. The government may need to implement policies to encourage and facilitate remittances from its diaspora community.
The Algerian government's efforts to boost economic growth and development will be closely watched, particularly in light of the country's declining remittance inflows. As the country navigates its economic challenges, the role of diaspora remittances will remain a key area of focus.
Key points
- Algeria received $1.799 billion in diaspora remittances in 2025.
- Algeria is the only North African country that has seen a decline in diaspora remittances over the past decade.
- Egypt leads the region in diaspora remittances, accounting for 57% of its exports in 2025.
