How a proposed U.S. remittance fee could affect Ghanaians and other immigrants

By clement nhyra addaiTop Knowledge TV | May 15, 2025

A new legislative proposal in the United States has raised alarms across immigrant communities, including Ghanaians, as it seeks to impose a fee on international remittances sent from the U.S. to other countries. The move, if passed into law, could significantly impact millions of families in Ghana and across Africa who rely on remittances as a lifeline.

The Proposal: Taxing Money Sent Abroad

The bill, currently being discussed in the U.S. Congress, suggests a remittance fee ranging from 2% to 5% on all money transfers sent outside the country. Supporters of the proposal argue that the funds raised would be used to finance border security and other domestic priorities. However, critics say the policy unfairly targets immigrants and could deepen economic hardship in developing nations.

For many Ghanaian immigrants in the U.S., remittances are not just routine transactions—they are vital contributions to their families back home for healthcare, school fees, rent, and small business operations.

Why Ghanaians Should Be Concerned

Ghana receives billions of dollars in remittances annually, with a significant portion coming from the United States. According to the Bank of Ghana, remittances in 2023 amounted to over $4.3 billion, making it one of the top sources of foreign inflows after gold and cocoa.

A fee on these transfers could mean less money reaching families in Ghana, directly affecting their ability to meet basic needs. For example, a 5% fee on a $500 transfer would deduct $25—an amount that could otherwise go toward food, medicine, or school expenses.

Social and Economic Ripple Effects

The proposed policy could also have a ripple effect on Ghana’s broader economy. Many local businesses rely on funds from relatives abroad for startup capital and expansion. Reducing the amount of money flowing in could slow down economic activity, especially in rural communities and among low-income households.

There are also concerns that such a law could push immigrants toward unregulated or informal money transfer channels, increasing the risk of fraud and financial crimes while reducing the transparency of global financial systems.

Voices of Concern

Economists and migrant advocacy groups have voiced strong opposition to the proposal. “Remittances are one of the most stable sources of income for many African nations,” said Dr. Kwabena Mensah, a financial analyst based in Accra. “Any policy that disrupts this flow not only hurts families but undermines entire communities.”

Ghanaian community leaders in the U.S. have also begun lobbying efforts, urging lawmakers to reconsider the implications of the fee on immigrant families and international development.

What’s Next?

While the bill is still under review and has not yet been passed into law, its progress is being closely watched by foreign governments, financial institutions, and diaspora communities alike. Should it pass, it could set a precedent for other countries and redefine the cost of cross-border financial support.

In the meantime, Ghanaian authorities are being urged to engage diplomatically with U.S. counterparts and explore strategies to protect the flow of remittances, such as bilateral agreements, low-cost transfer partnerships, and financial education campaigns.