This year’s IDFR observance in Ghana, which took place on 13 June acknowledged the contribution of remittances to the millions of family members, rural communities and the country. The event highlighted the importance of digitalizing remittances towards financial inclusion and cost reduction, and to leave no one behind.The International Day of Family Remittances (IDFR) is a universally-recognized observance adopted by the United Nations General Assembly (Resolution A/RES/72/281) and marked every year on 16 June.This year’s IDFR will be observed in Accra on 13 June to draw attention to and acknowledge the contribution of remittances to Ghanaian families, rural communities and the country.Every year, the IDFR highlights the significant contribution of over 200 million migrants, through the remittances they send home, to improve the lives of over 800 million family members. This day draws our attention to the economic impact of this money on households, communities, and nations, and recognises the sacrifice, separation and generosity often involved.By 2030, it is projected that globally US$5 trillion will have been sent home by migrants to lower- and middle- income countries, with much of this money going directly to rural areas. Rural areas where 80% of the world’s poor live, face food shortages, and the impacts of climate change are the most pronounced.
This money, sent by migrants and diaspora communities, directly supports millions of families to achieve their own Sustainable Development Goals (SDGs). They contribute directly to poverty alleviation, education, healthcare, small business development, gender equality, and rural economic growth.
IDFR 2024 Ghana
Ghana is the second largest remittance recipient in sub-Saharan Africa, where remittances are estimated to account for 6 per cent of the country’s GDP, summing to US$4.34 billion in 2023 (Bank of Ghana). To put into context, this is more than the combined inflow of Official Development Assistance (ODA) and Foreign Direct Investment (FDI) to Ghana. These flows have shown resilience through times of crisis, including the Covid-19 pandemic and Ghana’s recent economic challenges.
Celebrating Successes
Ghana has much to be proud of in terms of remittances, access to digital financial remittances and financial inclusion.
Ghana has a clear and well defined regulatory environment for remittances, complimented by a well-developed payment system that provides effective interoperability between all financial service providers and fosters a competitive remittances market.
The Ghana Card, the biometric national ID, has been issued to 88 per cent of the adult population, playing a vital role in providing secure and convenient verification of remittance customers during KYC procedures at financial institutions.
There have been significant advancements in financial inclusion and in attracting remittances to be received into formal channels. Financial Inclusion levels in Ghana now exceed the 2023 target of 85 per cent set out in the National Financial Inclusion and Development Strategy 2018 – 2023 for the adult population formally served by banks and non-bank financial institutions.
At 95 per cent, financial inclusion in Ghana is the highest in the region. This is a significant increase of 54 per cent from 41 per cent in 2010 (Ghana Demand Side Survey, 2021) and can be attributed to the dedication of many across the country to improve access to formal financial and remittance services.
In recognition of the Bank of Ghana’s pioneering role in promoting financial inclusion and intellectual contributions to knowledge products and policy Guidelines, the Bank were recipients of the Financial Inclusion Institutional Leadership Award 2023 by the Alliance for Financial Inclusion.
Leave No One Behind
However, there is still more to do.
The cost to send money to Ghana remains high. The current average cost of sending US$200 to Ghana is 7.1 per cent of the amount sent (RemitSCOPE Q3 2023). Whilst the cost to send to Ghana is less than the African average of 7.9 per cent (RemitSCOPE Q3 2023), it is still far above the 3 per cent SDG 10.c target and a driver of the use of informal remittance services.
While financial inclusion access in Ghana at an all-time high, financial capability is low for 40 per cent of population. There is room for greater use of digital international remittances and products and services linked to them, especially in rural areas and for women.
The Bank of Ghana remain dedicated to listening and responding to the needs of the industry and continue to strengthen the enabling environment for remittances in 2024 with activities undertaken:
- Recently granted the first licence for outbound remittances to Ghanaian Fintech Zeepay through the regulatory sandbox, launched in 2022 to enable the innovation and testing of financial products, services and business models.
- Continue to work with IFAD to improve remittance data collection and reporting standards
As a champion country of the Global Compact on Migration (GCM), Ghana continues to highlight remittances as a priority area within the GCM three-year National Development Plan.
Join us, and let us work together, one family at a time, to digitize remittances towards financial inclusion and cost reduction, and to leave no one behind.
Provisional agenda (GMT)
| 9:00-9:30 | Welcome coffee and networking |
| 9:30 – 9:45 | Welcome – campaign 2023-2024 + IDFR videoTheophilus Larbi, Country Programme Officer, IFAD Ghana |
| 9:45 – 9:55 | Overview of remittances and financial inclusion in Ghana – Highlighting successes Francine Dove, Remittances and Inclusive Digital Finance, Financing Facility for Remittances – IFAD |
| Celebrating Successes – “Cost Reduction, Digitalization & Financial Inclusion” | |
| 9:55 – 10:00 | Response by Bank of Gambia Abdou Cessay, Director of Fintech and Foreign Exchange Bureau Operations, Bank of Gambia |
| 10:00 – 10:10 | Leveraging on remittances to drive financial inclusion in rural Ghana though an innovative financial literacy scheme Godwin Agozie, Head of Money Remittances, Fidelity Bank and Dr. Nii Lante Heward-Mills, Country Director, Viamo |
| 10:10 – 10:20 | Success as a Ghanaian Money Transfer Operator Delali Kotoka, Business Development Manager, PayAngel |
| 10:35 11:00 | Coffee break and Group Picture |
| Leave No One Behind | |
| 11:00-11:10 | Improvement of remittance data collection and reporting standards Clarence Blay, Acting Head Payment Systems Department, Bank of Ghana |
| 11:10 – 11:25 | Global Compact of Migration – Ghana’s commitment as champion country Aron Gebremariam, EU-UN Building Migration Partnerships Programme, UN Network on Migration, IOM |
| Country Pitch – Wild Card (climate resilience/diaspora investment) | |
| 11:25- 11:35 | Financial Engagement Strategies for Ghanaian Diaspora Dr. Kirstie Kwarteng, Migration and Diaspora Expert |
| 11:35-11:45 | WIDU – Diaspora Investment and Entrepreneurship Maame Yaa Akyaa, Communications Officer, Employment Promotion with the Diaspora “WIDU Platform”, GIZ |
| 11:45 – 11:55 | Diaspora 4 Climate Action (D4C) Camilla Taranta, Professional Officer Programme Support Officer (Labour Mobility and Human Development), IOM Ghana |
| 11:55 12:05 | The “Boosting Green Employment and Enterprise Opportunities in Ghana programme – (GrEEn) Clara Arthur, Policy and Ecosystem, Inclusive Digital Economies – IDE, UNCDF Ghana |
| 12:05 – 12:30 | Closing remarks |
| 12:30onwards | Networking lunch |
