Market Insights – FFRemittances

There’s no disputing the contribution of migrant remittances to the economic well-being of friends and family back home. For many African countries, the value of remittance flows exceeds that of foreign direct investment.

However accessing the money via formal channels can be challenging for recipients who are faced with Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements such as the need to present proof of address, or to receive remittances in person despite living in an area without access to a branch of the remittance service provider (RSP).

Cenfri and IFAD have now developed the IFAD Remittance Innovation Toolkit. The toolkit builds on our experience under the Remittance Access Initiative (RAI), which we rolled out in seven African countries as part of the PRIME programme, co-financed by the European Union.

This toolkit provides guidance on improving access to secure and swift remittance services through enhanced identity verification and customer due diligence (CDD) practices.

It enables regulators and remittance service providers to evaluate national regulatory frameworks, analyze risks and opportunities, and implement innovative solutions for challenges.

The toolkit builds on the Remittance Access Initiative which is active in seven African countries as part of the PRIME programme, co-financed by the European Union.

This project targets Ghana and its remittance corridors from Germany and the Netherlands. The project fiche provides a detailed overview of the project goals and activities, highlighting the strategies employed to optimize remittance flows. It outlines the expected results to be achieved by the end of the project period, aiming to enhance financial inclusion, reduce transaction costs, and support economic growth in Ghana.

This research is part of a broader diagnostic series under the Platform for Remittances, Investments, and Migrants’ Entrepreneurship in Africa (PRIME Africa) initiative. Available for download on the RemitSCOPE web portal, this series provides an in-depth analysis of the remittance market across selected African countries. Senegal’s market shows competitiveness and progress towards achieving SDG 10.c on remittance costs, though there is still potential for improvement in digitalization and financial inclusion.

This diagnostic is a working document that will be updated and amended as additional information is collected and assessed. Currently, the report provides an assessment of the remittances market in Morocco. It will soon be consolidated with insights into three specific send-market corridors to Morocco, incorporating demand-side research from Germany, France, and Italy. This comprehensive analysis aims to enhance understanding and optimize the remittances landscape for Morocco.

This diagnostic offers a comprehensive assessment of Kenya’s remittance market, particularly in the context of the COVID-19 pandemic. Utilizing a market-oriented approach, it includes both a supply-side analysis and a review of three key inbound remittance corridors.

The GFRID 2015 report showcases European remittance flows’ dynamic and innovative character, worth almost US$110 billion in 2014. It highlights the crucial role of financial inclusion, the use of innovation and technology to reduce transaction costs, and the significance of diaspora investments in creating employment opportunities in home countries. This report underscores the potential of remittances to drive economic growth and development through strategic financial practices and technological advancements.

Theme: Market Insights

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