The International Fund for Agricultural Development (IFAD) and the International Organization for Migration (IOM) have jointly developed this Policy Brief on unlocking the full potential of remittances and diaspora investment for Member States’ consideration in preparation for the FfD4.
Key messages from the brief include:
- Migrants’ remittances are a major source of private finance for LMICs, surpassing foreign direct investment (FDI) and official development assistance (ODA). In 2023, remittances to LMICs amounted to approximately US$656 billion and are projected to reach US$5 trillion cumulatively by 2030.
- Beyond remittances, migrants also invest back home and contribute substantial human and financial capital in the form of skills and networks into their countries of origin.
- Remittances and diaspora investments significantly benefit rural areas and less developed countries by bridging financing gaps for millions of households. These funds help millions of people out of poverty, improve health and nutrition, and keep children in school, all development goals. They also enable people to acquire assets, start businesses and strengthen their livelihoods, and enhance resilience to climate-related challenges.
- Unlocking Full Potential: Despite their importance, the full potential of remittances and diaspora investment for sustainable development remain unrealised. Enhanced international support and strategic commitment could harness these financial flows to address long-term goals, significantly advancing the Sustainable Development Goals (SDGs).
