The side event, convened by the International Fund for Agricultural Development (IFAD), the International Organization for Migration (IOM), permanent missions of Mexico and Nepal to the United Nations, on the margins of the Second Session of the Preparatory Committee for the 4th International Conference on Financing for Development (FfD4) aims to highlight the transformative role of family remittances and diaspora investments in financing the SDGs and enhancing resilience. It will provide a platform for governments, the UN system, civil society, the private sector, and other stakeholders to share strategies, partnerships, and initiatives, with a focus on leveraging digitalization for greater financial inclusion. The event seeks to amplify the recommendations outlined in the IFAD-IOM policy brief, supporting Member States’ efforts in the FfD4 preparatory process.
The Remittances and Development Program (PRYD) carried out by the Center for Latin American Monetary Studies (CEMLA), together with the International Fund for Agricultural Development of the United Nations (IFAD) will host the upcoming Annual Meeting of The Remittances Program and Development and Presentation of The Remitscope LAC Platform at CEMLA´s headquarters in Mexico City, on November 29, 2024, from 9:00 to 13:15 hrs, Mexico City time.
The first step for the effective analysis of policies that could improve the productive use of remittances and support the development of recipient households and LAC countries is to have information, organized, structured, and easily accessible, that allows evaluating the aspects key to remittance, migration and their relationship with development, which will allow identifying possible measures that can support decision-making in these cases. In this sense, an online consultation platform has been developed, called RemitScope LAC, which includes all the information available on different aspects of remittances, migration, and their relationship with financial inclusion and development.
To create the platform, information was consolidated through online data, consultations, surveys, and interviews in each country, as well as with the participation of some Central Banks that complemented the official information on these topics.
The event is aimed at officials from central banks, bank superintendencies, financial sector supervisory entities, statistical institutes, officials from the remittance industry, and others involved in the issue of migration, remittances, and development.
The event will be in person and virtual format, in Spanish with simultaneous translation into English.
It is very important to have the name and contact information of the participating officials from your Institution before November 22, 2024. The applicant entity will pay travel expenses, lodging, and medical insurance of the attendees.
On behalf of CEMLA, the event is coordinated by René Maldonado, +52 55 5061 6663, rmaldonado@cemla.org; supported in logistics by Rocío Ramírez Peña, +52 55 5061 6663 mramirez@cemla.org.
In Guatemala, remittances are a fundamental pillar of the economy, with millions of families depending on them for their daily sustenance. In 2023 alone, Guatemalan migrants sent US$19.8 billion home, representing 20 per cent of the national GDP. These resources are essential for many families, allowing them access to better nutrition, education, healthcare and even the ability to save and invest. However, despite knowing the positive impact of these flows on the national economy, the potential of remittances is often limited by structural obstacles such as high rates of financial exclusion, lack of access to digital financial services and insufficient information about this market.
Aware of these challenges, the International Fund for Agricultural Development (IFAD) is organizing an event that convenes presenters and strategic participants to deepen the dialogue around remittance flows in Guatemala. The objective is to explore innovative strategies to maximize the development impact of remittances, focusing on improving financial inclusion and leveraging digital tools to expand access to financial services, especially in rural areas.
The event acted as a platform for key stakeholders, such as policymakers, financial institutions, remittance service providers and international development agencies, to engage in a constructive dialogue.
Current trends and challenges in the remittance market were presented, and opportunities to foster sustainable development through improved financial and digital inclusion strategies for the Guatemalan population discussed. The meeting established a collaborative network in order to strengthen alliances and share best practices to optimize the remittance market in the country. It aims to lay the groundwork for possible future initiatives to increase the effectiveness of these flows for the country’s economic development.
The main objective of the event was to promote financial inclusion through tailored strategies that improve access to and use of financial services for remittance beneficiaries, especially those residing in rural areas. The event aligned with the objectives set out in the ENIF 2024-2027, driving collaborations that enhance financial inclusion for remittance recipients through digital solutions and tailored financial products. Emphasis was also placed on the importance of digitalization within the remittance sector. By innovating and expanding digital payment platforms, the aim is to create more efficient, accessible and cost-effective remittance transfer channels. This digital transformation is essential to overcome geographic barriers and improve financial access in remote communities.
The event highlighted initiatives such as the RemitScope LAC. This tool was launched and presented for the first time in the region during the event, that provides complete and accurate data on remittance flows in Latin America and the Caribbean, thus improving information collection and dissemination practices. With RemitScope, market players will be able to develop more effective strategies and policies to maximize the development impact of remittances, empowering them with reliable information that fosters informed decisions and a more inclusive and efficient financial ecosystem.
In recent years, digital remittances have gained significant traction due to the proliferation of mobile networks, the emergence of fintech startups, and initiatives promoting digital payments. As a result, the volume of remittances to Africa has been growing steadily over the past decade. The advent of digital technology has revolutionized various sectors globally, and the remittance industry is no exception. It has facilitated easier and more cost-effective transfer methods.
Mobile money services, in particular, have seen a surge in usage as a major remittance channel, facilitating financial inclusion and promoting the development of an entire related ecosystem. The transition into the digital age and the adoption of digital remittances presents a new set of challenges. Yet, understanding these challenges is the first step towards overcoming them and unlocking the potential of digital remittances
This webinar aims to shed light on the considerable developmental potential of the digitalization of remittances, positioning them as pivotal contributors to Africa’s development agenda. Join us for this insightful discussion as we uncover how embracing the digitalization of remittances can catalyze economic growth and empower communities across Africa.
On 17 October 2024, IFAD, in partnership with FSD Kenya and SASRA, will launch the report on “The role of SACCOS as international remittance providers in Kenya”.
This report aims to inform public policy and the private sector strategy on the role of SACCOs in extending international remittances, especially in rural areas. More information regarding the project is available here.
If you are interested in joining the event, please get in touch with us at remittance.kenya@ifad.org
Sep 26, 2024 12:00 AM - Dec 9, 2024 6:48 AM | Author: FFR
IFAD’s Financing Facility for Remittances under the PRIME Africa programme, co-financed by the European Union, facilitated a peer learning exchange for African Central Banks, focusing on the Bank of Uganda (BoU). As part of this initiative, BoU visited the Central Bank of Kenya (CBK) to learn from their remittance data collection systems. This event, jointly organized by the FFR and the CBK, provided an opportunity for BoU to gain practical insights and strengthen its data collection processes. Key stakeholders, including the Kenya Bureau of Statistics (KNBS) and Financial Sector Deepening Kenya (FSD Kenya), contributed to the knowledge-sharing effort to improve data-driven policy and private-sector strategies at the event.
The workshop, hosted by CBK, aimed to share best practices and support the enhancement of data collection to inform policy better and support private-sector business strategies.
During the three days, all participants had the opportunity to discuss critical areas such as Monthly data collection practices adopted by the central banks.
In addition, various surveys to capture qualitative insights, such as the following, were discussed:
Diaspora Remittances Survey (CBK)
Remittance Household Survey (CBK)
Annual Personal Transfer Survey (BoU)
The participants also discussed opportunities to engaget with Remittance Service Providers, including Cooperative Bank and Upesi.
The CBK Deputy Governor, Dr Susan Koech, stressed the importance of remittances to the East African economies. Lydia Ndirangu, Deputy Director of the Statistics & Knowledge Management Research Department at the Central Bank of Kenya, recognised the workshop’s importance: “I am thankful to IFAD for supporting this peer-learning, which is very timely due to our ongoing data collection activities for the Remittance Household Survey.”
Milly Nalukwago Isingoma, Director of the Statistics Department at the Bank of Uganda, emphasised the exchange’s outcome: “ We are grateful to CBK and IFAD for this enriching workshop. We go home inspired by Kenyan practice and with good ideas on how to improve our current monthly data collection.”
The CBK and BOU teams acknowledged the opportunities that current practices can provide for additional data points for policymakers and market players. At the same time, both teams realised that only a more granular data collection and approach could provide a deeper understanding and better analysis of the remittance market.
Jun 13, 2024 9:00 AM - Jun 13, 2024 12:30 PM | Author: FFR
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.
Overview of remittances and financial inclusion in Ghana – Highlighting successesFrancine Dove, Remittances and Inclusive Digital Finance, Financing Facility for Remittances – IFAD
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
