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

In this context, the United Nations Office of the Special Adviser on Africa (OSAA) is collaborating with the International Fund for Agricultural Development (IFAD) to organize a webinar on “Embracing Digitalization of Remittances in Africa” on Wednesday, 20 November, 9:30-11:00 (EST).

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.

The launch event, held in Nairobi on 17 October, explored the potential of SACCOs in optimizing international remittance flows in Kenya. Key stakeholders, including the CEO of SASRA, representatives from FSDK, and Mariatu Kamara, Country Director (Kenya) for the International Fund for Agricultural Development (IFAD) along with other staff attended the event. The discussions focused on how SACCOs could enhance financial inclusion by tapping into the growing remittance market while addressing regulatory challenges and exploring partnerships to strengthen Kenya’s financial ecosystem.

Find more details on the report and the event.

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

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.

This year’s IDFR observance in Morocco, which took place on 12 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.

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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.

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 these money flows nations, and recognises the sacrifice, separation and generosity of migrants.

By 2030, it is projected that globally US$5 trillion will have been sent home by migrants to lower- and middle- income countries. Much of this money goes directly to rural areas where 80 per cent of the world’s poor live, face food shortages, and the impacts of climate change are the most pronounced.

Remittances, sent by migrants and diaspora communities, directly support 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 Morocco

The 2024 edition of the International Day of Family Remittances will be held in Rabat on June 12. This day aims to highlight and commend the crucial role that remittances from Moroccans residing abroad (MRE) play in supporting families, rural communities, and the national economy.

Remittances by Moroccans living abroad saw significant growth in 2023, surpassing $11.5 billion, which is more than 8 per cent of the GDP. These remittances have consistently exceeded foreign direct investment (FDI) flows, providing a vital source of income for Moroccan families, especially during the COVID-19 pandemic. In this regard, Morocco stands out in the Middle East and North Africa region in terms of remittances. In sum, MRE remittances play an essential role in the Moroccan economy and continue to grow, contributing to the well-being of families in Morocco.

Celebrating Successes

In recent years, Morocco has made remarkable progress in remittances, financial inclusion, and access to digital transfers. This progress aligns with the implementation of Morocco’s New Development Model, further strengthening the role of MRE in the country’s economic and social development.

In 2023, remittances from the Moroccan diaspora, which comprises over 3 million migrants (8.5 per cent of the population) primarily residing in the European Union, reached $11.5 billion. This represents 8 per cent of GDP, making Morocco the second-largest recipient in the MENA region and the third in Africa.

Despite health crises, inflation, and recurrent droughts, Moroccan authorities have continued structural reforms and household support measures. Efforts have focused on social development, reducing inequalities, and creating favourable conditions for economic growth.

The National Financial Inclusion Strategy, led by the Ministry of Economy and Finance and Bank Al-Maghrib, achieved significant progress with a 66% implementation rate in 2022, focusing on the most disadvantaged segments. The digitization of the economy and payments is at the heart of this strategy to achieve sustainable development goals.

Morocco’s regulatory framework for remittances clearly defines partnership options and promotes digital transfers. The national retail payment system, historically based on payment cards and managed by banks, is now interoperable with mobile payment systems, allowing increased digitization of remittances.

Money transfer companies in Morocco adhere to high standards for anti-money laundering and combating the financing of terrorism. The new electronic national identity card facilitates the identification process and opening low-risk accounts. Introduced by the new banking law of 2016, the status of payment institution represents a major innovation in the financial sector’s regulatory environment, paving the way for the development of electronic money in Morocco. Among the payment instruments that can be distributed by payment institutions, mobile phone-activated digital payment accounts present a real opportunity given the high mobile phone penetration rate among Moroccan adults. The law also created a new category of agents – retail agents – who can handle cash-in and cash-out operations on payment accounts. The objective is to expand existing remittance payment networks to reach underserved areas and populations, offering lower costs and greater convenience.

Significant efforts have been made to expand the mobile and digital payment network, with active promotion of MarocPay and better coordination among ecosystem actors. Banking and payment institutions have expanded financial inclusion for individuals and very small businesses, continuously adjusting their strategies to adapt to the evolving context. The Moroccan Foundation for Financial Education has continued to develop its programs, supporting the sector and the most vulnerable through various partnerships. These initiatives have contributed to a more inclusive financial system, supporting equitable economic growth and improving living conditions for Moroccans.

Leave No One Behind

The aforementioned achievements provide the foundation for continuing efforts to fully realize the goal of leaving no one behind.

Sending money to Morocco costs an average of 5.5 per cent (Q1 2023), slightly below the global average (6.2 per cent Q2 2023), with room for further reduction through online methods to reach the SDG target 10.c of bringing costs below 3 per cent.

However, the average cost of sending digital remittances to a mobile wallet in Morocco from a developed country was only 2.64 per cent in Q4 2021. Despite this significant cost difference, the use of digital remittances remains limited and requires multiple interventions to raise awareness and remove adoption barriers for both senders and recipients. Notably, access points are mainly concentrated in the most populated urban and rural areas. At the end of 2021, only 32.9 per cent of rural communes had a financial services access point (BAM 2021), and 4.1 million people were more than 10 km from a remittance access point (IFAD, RemitSCOPE 2022). To date, the development of the retail network and the adoption of mobile payment accounts remain limited, with only 3.2 million electronic wallets at the end of 2021 (HPSS 2022) for an adult population estimated at 27 million (GSMA 2022).

In this context, Morocco is experiencing a slow increase in digital remittances, representing a latent opportunity to further reduce costs and improve access to remittances and associated financial services, particularly in rural areas. This is mainly due to a combination of factors affecting both supply and demand, such as historically cash-based remittance models, the reluctance of payment institutions to change their business model from cash remittances to digital transfers, and a lack of digital and financial literacy among the population to balance the risks and benefits of adopting digital remittance and receipt methods.

On the other hand, financial inclusion in Morocco remains low compared to North African and especially Sub-Saharan African countries. It is marked by a significant gender gap, especially in rural areas. Unlike many Sub-Saharan African countries, the use of electronic money and mobile wallets remains limited, partially explaining this differential. This opens opportunities to leverage digital remittances received in electronic accounts to promote financial and digital inclusion, particularly for women. With 44 per cent in 2021 (Findex 2021), financial inclusion levels in Morocco show room for improvement compared to the LMIC average (71 per cent). The gender gap in financial access is particularly pronounced, with a difference of 23 per cent (Findex 2021). More than 50 per cent of remittance recipients are women, with migrants’ mothers representing 38 per cent of recipients and migrants’ wives over 15 per cent (High Commission for Planning, Morocco, 2020). International remittances can facilitate women’s access to formal financial services. However, a marked preference for cash hinders the adoption of digital payment methods and the digitization of remittances, along with existing social norms that impede women’s access to and use of accounts.

It is also important to note that current remittances are primarily focused on basic needs, effectively mitigating short-term shocks, particularly for rural populations. However, envisioning the implementation of financial education and tailored financial services through better consumer protection, private sector involvement, and supporting a multi-stakeholder approach, it is possible to transition from short-term survival response to true long-term resilience.

Celebrating this day is a key step to acknowledge all that has been achieved and further mobilize stakeholders to leave no one behind.

Provisional agenda

9:00 – 9:30Welcoming participants
9:30 – 10:15Opening wordsMs Nathalie Fustier, United Nations Resident Coordinator in MoroccoHer Excellency Mrs Patricia Llombart Cussac, Ambassador of the European Union to MoroccoMr. Alvaro Lario, President – FIDA (video)Ms Hakima El Alami, Director – Payment Systems & Financial Inclusion – Bank Al-Maghrib (video)
10:15 – 10:30Campaign 2023-2024Ms Dina Saleh (video), Regional Director Near East, North Africa and Europe Division – IFAD
Panel 1: Celebrating success: Remittances, digitalization and financial inclusion
10:30 – 11:15Overview of remittances in Morocco and examples of financial and digital inclusion of migrants.Ms Meryem Aziz Alaoui, Country Manager – Financing Mechanism for Remittances FIDAMr Walid Kerkeni, Director, Aide Fédération – Paris Region Payment Institutions in Morocco – vectors of financial and digital inclusion.Representative of the Association Professionnelle des Etablissements de Paiement Financial education in payment methods and digital money transfersMs Fatima Aziz, Director – Moroccan Foundation for Financial Education Literacy and financial education: best practicesMs Tifitri Elasri, National Agency for the Fight against Illiteracy
11:15 – 11:45Coffee break and 2023-2024 campaign
Panel 2: “Leaving No One Behind”
11.45 – 12.45Spotlight on the interventions of various partners and the challenges to be met to ensure that remittances to families are better taken into accountInternational Organization for Migration (IOM)German Development Cooperation (GIZ)Consultative Group to Assist the Poor (CGAP)Moroccan Foundation for Financial Education (FMEF)Professional Association of Payment Institutions (APEP)
12:45 – 13:00Question and answer session
13:00Closing and Lunch

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)

9:00-9:30Welcome coffee and networking  
9:30 – 9:45Welcome – campaign 2023-2024 + IDFR videoTheophilus Larbi, Country Programme Officer, IFAD Ghana 
9:45 – 9:55Overview 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 – 10:00Response by Bank of Gambia  Abdou Cessay, Director of Fintech and Foreign Exchange Bureau Operations, Bank of Gambia 
10:00 – 10:10Leveraging 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 – 10:20Success as a Ghanaian Money Transfer Operator  Delali Kotoka, Business Development Manager, PayAngel  
10:35 11:00Coffee break and Group Picture
Leave No One Behind
11:00-11:10Improvement of remittance data collection and reporting standards Clarence Blay, Acting Head Payment Systems Department, Bank of Ghana  
11:10 – 11:25Global 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- 11:35Financial Engagement Strategies for Ghanaian Diaspora  Dr. Kirstie Kwarteng, Migration and Diaspora Expert 
11:35-11:45WIDU – Diaspora Investment and Entrepreneurship   Maame Yaa Akyaa, Communications Officer, Employment Promotion with the Diaspora “WIDU Platform”, GIZ 
11:45 – 11:55Diaspora 4 Climate Action (D4C) Camilla Taranta, Professional Officer Programme Support Officer (Labour Mobility and Human Development), IOM Ghana 
11:55 12:05The “Boosting Green Employment and Enterprise Opportunities in Ghana programme – (GrEEn) Clara Arthur, Policy and Ecosystem, Inclusive Digital Economies – IDE, UNCDF Ghana 
12:05 – 12:30Closing remarks
12:30onwardsNetworking lunch

The Gambia National Remittance Stakeholder Network meeting is fast approaching! Please take a moment to review the agenda here below and reserve your spot by registering at the provided link

Here are the meeting specifics:

Date: Friday, May 10th

Time: 10:30 am GMT

Location: The Sir Dawda Kairaba Jawara International Convention Centre

we can’t wait to have you with us!

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The Uganda NRSN and Community of Practice meeting took place on Wednesday, April 24th, beginning at 08:30 am EAT at the Golden Tulip Canaan in Kampala.  This time, the meeting commenced with David Berno , from IFAD’s FFR,  Following that, we heard from Pamela Nakityo of Airtel Uganda. Next, Damalie Sajjabi from Interswitch who shed light on innovations in aggregating payments and remittances. Lastly, just before our networking lunch, Dr. Charles Maina, from My Guardian, lead a community of practice session on digital services tailored for migrants.

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During the Ghana  Community of Practice (CoP) meeting scheduled for March 28th, 2024 at the Alisa Hotel, North Ridge, Accra, the following topics have been covered:

  • Identifying major consumer protection issues in Ghana’s remittances market.
  • Examining safeguards against fraud and scams targeting remittance receivers.
  • Exploring customer support channels and complaint resolution processes for handling disputes.
  • Discussing potential improvements to consumer protection regulations

Thank you to all participants for your valuable contributions!

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