US Remittance Tax Threatens Billions in African Inflows

A recently proposed US bill, dubbed the “One Big Beautiful Bill Act,” seeks to impose a 5% tax on all outbound remittances sent by non-citizens, potentially reducing inflows into Sub-Saharan Africa’s economies in 2025 by $2.8 billion. If passed, the bill will seriously impact countries like Nigeria, Ghana, and Kenya, which rely heavily on remittances for education, healthcare, and small business funding. Meanwhile, critics warn the tax could push migrants toward informal channels, increasing financial instability and undermining development goals. Remittance platforms may also face higher compliance costs, further straining the flow of funds. As the bill advances in Congress, African leaders and diaspora communities are urging US lawmakers to reconsider its far-reaching implications in their decision-making.

Techcabal