GFRID Summit 2023 Nairobi
International Day of Family Remittances Nairobi

Migrant contributions in the form of remittances and diaspora investments are a vital source of income for individuals and families across the world and can have significant impact on the economic development of their home countries.

200 million migrants send 800 million families
0 %
Estimated percentage of remittances to rural areas
0 %
US$ billion Expected remittances to reach low and middle income countries in 2023
$ 0
Estimated share of remittances spent on immediate needs
0 %

Areas of Focus

Engagement Initiatives

Through innovative and financially-inclusive mechanisms, the FFR successfully addresses the main gaps affecting the link between remittances, diaspora investment and development through its operations, data and research, and policy engagement.

Operations
Data & Research
Policy Engagement

The Human Face Of Remittances

FFR is committed to promoting sustainable development by aligning with 12 out of the 17 SDGs, specifically focusing on the impact of remittances.

SDG 1 - No Poverty

On average, remittances represent up to 60 per cent of a recipient family’s income, and typically more than double its disposable income. These funds allow families to build assets and deal with uncertainty.


Analyses of 71 developing countries show significant poverty reduction effects of remittances: a 10 per cent increase in per capita remittances leads to a 3.5 per cent decline in the share of poor people in the country’s population.

SDG 2 - Zero Hunger

In rural communities, half of remittances are invested on agriculture-related expenses.

Additional income increases receiving households’ demand for food, which increases domestic food production and improves nutrition, particularly among children and the elderly.

Investment of migrants’ income in agricultural activities creates employment opportunities.

SDG 3 - Good Health And Well-Being

Remittances invested in health care – access to medicine, preventive care and health insurance products – improve the health and well-being of recipient families.

Infants born into remittance families have a higher birthweight and are less likely to die during their first year.

SDG 4 - Quality Education

One of the main reasons migrants send money home is to ensure access to better education for their children.

Remittance-receiving households have demonstrably better educational participation than non-recipients, and invest about one tenth of their income educating their children.

Remittances lead to almost doubling school enrolment. Children from remittance families, especially girls, register higher school attendance, enrolment rates and additional years in school.

SDG 5 - Gender Equality

Women migrant workers now comprise half of all remittance senders: 100 million in total.

Remittances transform the economic role of women both on the sending side and receiving end through financial independence and better employment opportunities.

While women remit approximately the same amount as men, women tend to send a higher proportion of their income regularly and consistently, even though they generally earn less than men.

SDG 6- Clean Water And Sanitation

To create social capital and pool funds to address local needs, migrants and/or their families often organize themselves into neighborhood organizations in their communities or through hometown associations (HTAs) abroad.

HTAs identify development priorities and participate in their achievement though technical advice and fund- raising activities.

Community projects take into account sustainability concerns and community welfare based on primary needs (e.g. the provision of irrigation and clean water infrastructure).

SDG 7 - Affordable And Clean Energy

Remittances have a positive impact on family assets and overall quality of life when invested in housing, and they are more likely to be used for home improvements than for home purchases.

Affordable solutions for poor households and their communities are already available, including efficient cooking devices and clean energy solutions.

Local community projects may apply clean energy technologies, particularly relevant in remote rural areas lacking access to electricity.

SDG 8 - Decent Work And Economic Growth

Money held by remittance-receiving families and migrants’ savings in host countries improve financial resources available to the general economy. This capital can be maximized when coupled with financial and entrepreneurial services.

Migrant workers possess tremendous assets: knowledge, skills and networks. Returnee migrants bring back home a wealth of experiences and talents that can be channeled for their communities’ betterment.

SDG 10 - Reduced Inequalities

Reducing the cost of remittance transfers can substantially increase disposable income for remittance- receiving families.

By reducing average costs to 3 per cent globally, remittance families would save an additional US$20 billion annually.

Civil society awareness-raising and information campaigns are achieving progress in promoting better working conditions for migrant workers and cheaper, faster and safer means to send their remittances.

SDG 12 - Responsible Consumption And Production

As remittance families increase their purchase capacity and change their consumption patterns, they can do so by meeting individual needs and aspirations within the ecological limits of the planet.

Migrant households are regular and heavy consumers of nostalgic goods (home country products).

Trade of nostalgic goods and diaspora tourism imply significant revenue for countries of origin. Diaspora populations can act as a bridge to broader markets of nostalgic goods and local tourism.

SDG 13 - Climate Action

Migration is increasingly becoming a consequence of climate change.Remittances and diaspora investment play a crucial role in mitigating its negative impacts and helping cope with income shortages due to weather-related shocks.

Remittances enable the adoption of more sustainable crops and non- farm activities. Examples include: support to local enterprises to provide solutions for flood control, more efficient use of water, improved irrigation systems, storm/heat/wind- resilient building materials, among others.

SDG 17 - Partnerships For The Goals

Strengthen the means of implementationand revitalize the Global PartnershipFor Sustainable Development

Through initiatives such as the Global Compact for Safe, Orderly and Regular Migration, the international community now recognizes remittances as a vital support for hundreds of millions of people across the globe and works to strengthen their development impact on families and communities.

On average, remittances represent up to 60 per cent of a recipient family’s income, and typically more than double its disposable income. These funds allow families to build assets and deal with uncertainty.

Analyses of 71 developing countries show significant poverty reduction effects of remittances: a 10 per cent increase in per capita remittances leads to a 3.5 per cent decline in the share of poor people in the country’s population.

In rural communities, half of remittances are invested on agriculture-related expenses.

Additional income increases receiving households’ demand for food, which increases domestic food production and improves nutrition, particularly among children and the elderly.

Investment of migrants’ income in agricultural activities creates employment opportunities.

Remittances invested in health care – access to medicine, preventive care and health insurance products – improve the health and well-being of recipient families.

Infants born into remittance families have a higher birthweight and are less likely to die during their first year.

One of the main reasons migrants send money home is to ensure access to better education for their children.

Remittance-receiving households have demonstrably better educational participation than non-recipients, and invest about one tenth of their income educating their children.

Remittances lead to almost doubling school enrolment. Children from remittance families, especially girls, register higher school attendance, enrolment rates and additional years in school.

 Women migrant workers now comprise half of all remittance senders: 100 million in total.

Remittances transform the economic role of women both on the sending side and receiving end through financial independence and better employment opportunities.

While women remit approximately the same amount as men, women tend to send a higher proportion of their income regularly and consistently, even though they generally earn less than men.

To create social capital and pool funds to address local needs, migrants and/or their families often organize themselves into neighborhood organizations in their communities or through hometown associations (HTAs) abroad.

HTAs identify development priorities and participate in their achievement though technical advice and fund- raising activities.

Community projects take into account sustainability concerns and community welfare based on primary needs (e.g. the provision of irrigation and clean water infrastructure).

Remittances have a positive impact on family assets and overall quality of life when invested in housing, and they are more likely to be used for home improvements than for home purchases.

Affordable solutions for poor households and their communities are already available, including efficient cooking devices and clean energy solutions.

Local community projects may apply clean energy technologies, particularly relevant in remote rural areas lacking access to electricity.

Money held by remittance-receiving families and migrants’ savings in host countries improve financial resources available to the general economy. This capital can be maximized when coupled with financial and entrepreneurial services.

Migrant workers possess tremendous assets: knowledge, skills and networks. Returnee migrants bring back home a wealth of experiences and talents that can be channeled for their communities’ betterment.

Reducing the cost of remittance transfers can substantially increase disposable income for remittance- receiving families.

By reducing average costs to 3 per cent globally, remittance families would save an additional US$20 billion annually.

Civil society awareness-raising and information campaigns are achieving progress in promoting better working conditions for migrant workers and cheaper, faster and safer means to send their remittances.

As remittance families increase their purchase capacity and change their consumption patterns, they can do so by meeting individual needs and aspirations within the ecological limits of the planet.

Migrant households are regular and heavy consumers of nostalgic goods (home country products).

Trade of nostalgic goods and diaspora tourism imply significant revenue for countries of origin. Diaspora populations can act as a bridge to broader markets of nostalgic goods and local tourism.

Migration is increasingly becoming a consequence of climate change.Remittances and diaspora investment play a crucial role in mitigating its negative impacts and helping cope with income shortages due to weather-related shocks.

Remittances enable the adoption of more sustainable crops and non- farm activities. Examples include: support to local enterprises to provide solutions for flood control, more efficient use of water, improved irrigation systems, storm/heat/wind- resilient building materials, among others.

Strengthen the means of implementationand revitalize the Global PartnershipFor Sustainable Development

Through initiatives such as the Global Compact for Safe, Orderly and Regular Migration, the international community now recognizes remittances as a vital support for hundreds of millions of people across the globe and works to strengthen their development impact on families and communities.