US$2.2b in remittances flowing into island each year
REMITTANCES ARE the best tracked and quantified area of diaspora contributions by the World Bank and major recipient countries, and the single most popular indicator of the diaspora’s connection and value to Jamaica and its citizens.
Current remittance flows are recorded at US$2.2 billion annually. Estimates also indicate that approximately US$188 million are collected annually by remittance companies.
Although the entire value is not attributable to the Jamaican companies, it gives an indication of the value to the business environment. Our analysis also revealed that Jamaica is performing better than expected when we assessed the remittances received across major recipients of remittances in the region and across the globe in relation to the size of their diaspora.
Beyond sending remittances, the diaspora was found to be investing as much as US$800 million in Jamaica, with over US$330 million[1] held in local banking institutions, US$320 million in the stock market and another estimated US$175 million in business investments.
SIGNIFICANT AMOUNT
Preliminary data also show members of the diaspora holding in excess of US$500 million in mortgages in local banks. Considering the diaspora’s income, size, and propensity to save, our estimates indicate that the diaspora saves an average of US$12.8 billion annually.
This represents a significant amount, a portion of which Jamaica could reasonably target for investment opportunities.
In the export market, the diaspora not only purchases local goods and products, but they also help to facilitate the entrance of local exporters into the international markets.
The exports facilitated by the diaspora were measured at US$89 million, which accounts for 10 per cent of the exports to the United States, Canada and the United Kingdom.
The potential recorded was US$126 million, up to 14 per cent of the exports to these regions.
The Jamaican diaspora’s philanthropic contributions have been most consistent and evident for education and health care, with donations valued at US$14.5 million to health care since 2014 and US$100,000 for education.
In addition, almost 200 health care missions are carried out by diaspora groups annually. These groups provide free health care in medicine, dentistry, ophthalmology and a host of other medical specialities, as well as hospital equipment and pharmaceutical supplies.
CAPRI’s analysis revealed a potential for this area as high as US$514 million, factoring in the remittances received by a number of countries with significant remittance flows.