As the global economy continues to evolve, the phenomenon known as the ‘black tax’ has become an increasingly prevalent topic of discussion across Africa and its diaspora. This term refers to the financial obligations that many African workers feel compelled to shoulder, sending regular remittances to support their extended families back home.
From Senegal to Somalia, and Egypt to South Africa, the familiar chime of money transfer notifications from fintech apps like Western Union or WorldRemit often sets the tone for the day, week, or even month for these workers. For those sending money, these payments represent both a burden and a badge of pride, as they strive to provide a safety net for their loved ones.
In Nigeria’s economic hub of Lagos, salaried workers surveyed last year reported that an average of 20% of their monthly wages went towards supporting relatives. Similarly, in South Africa, where unemployment exceeds 42%, one wage often supports almost four people, according to the Pietermaritzburg Economic Justice & Dignity Group.
The pressure to give money to family members has also been found to limit the growth of businesses in Kenya, as entrepreneurs struggle to balance their personal and professional obligations.
Remittances from Africans outside the continent have been a lifeline, totalling $100 billion (£74 billion) in 2022, more than aid or foreign investment, according to the African Development Bank. Many well-educated young professionals aim for high-paying careers to build wealth for the next generation, hoping to break the cycle of struggle their families have endured.
Anthony Kimere, a Kenyan who relocated to Europe 36 years ago, has supported his extended family in various ways over the decades, including sending regular allowances to his grandparents, paying school fees for his cousins, and contributing to medical bills. He acknowledges that this assistance has taken a toll on his personal finances, stating, “The more people there are, the more frequent problems might be.”
Fungai Mangwanya, a Zimbabwean data analyst who emigrated to the UK in 2022, is driven by the desire to provide for his older relatives and build wealth for his future children. “For me, it’s just to be able to say that my child can go to whatever school they want across the world, or they can venture into whatever career, and they can still make their mistakes and restart without the worry of: where is my next meal going to come from?” he says.
The burden of the ‘black tax’ is not limited to individual experiences; it has broader societal implications. Some European countries already tax remittances, and this month, a 1% remittance tax came into force in the US. Experts warn that such taxes could disproportionately affect lower-income migrants, who already face high transaction fees.
As the African diaspora continues to navigate the complexities of supporting their families back home, the ‘black tax’ remains a complex and multifaceted issue that highlights the deep-rooted socioeconomic challenges facing the continent and its people.
