Harnessing the potential of remittance flows and diaspora investments for international development: more than $600 billion is sent home annually

Rome/Nairobi, 9 June 2023 - Despite the global economic turmoil triggered by the pandemic and ripple effects of the war in Ukraine, the hard-earned money sent by migrant workers to their families continues to be one of the most reliable sources of income for rural people in low and middle-income countries. Even in times of crisis, remittance flows have allowed people in developing countries to be resilient and even prosper. Last year, the money sent home exceeded US$600 billion annually, half of which went to poor rural areas.

“This phenomenon remains hidden in plain sight despite its magnitude and relevance to achieving the Sustainable Development Goals (SDGs). We know that the Official Development Assistance (ODA) and foreign direct investment to these countries is a smaller total amount than what migrants send to their loved ones back home,” says Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at the UN’s International Fund for Agricultural Development (IFAD).

Co-organized by IFAD, the UN Office of the Special Adviser on Africa (OSAA), and the World Bank Group, the Global Forum on Remittances, Investment and Development (GFRID) sets out to change mindsets of stakeholders, to fully recognize and harness the enormous potential of remittances and diaspora investments towards achieving the SDGs.

Global experts will discuss how to make sending money home cheaper, safer and faster, as well as how to build bridges to facilitate diaspora investments in the countries of origin. The digital remittance revolution will be a hot topic in lead up to 2030, as digital channels offer a vast array of possibilities to connect remittance flows to rural finance. This means boosting access to savings, credit and insurance, basic financial products that can be life-changing in poor rural areas.

Launch of the new RemitSCOPE Africa outcome report

The 2023 GFRID Summit will have a special focus on Africa, where 17 of its 54 countries rely on remittances for at least 4 per cent of GDP. The new RemitSCOPE Africa outcome report will be launched at the Forum (14 June, 11.30-12.00). Compiling the most up-to-date and trusted remittance and remittance-related data across 54 countries in Africa, and covering up to 140 different indicators per country, the RemitScope Africa report looks at the drivers, trends, impact and potential of remittances, and provides background information on details such as migration, remittance flows, pricing trends, financial inclusion, access, and the competitive environment.

 

WHAT	Global Forum on Remittances, Investment and Development Summit– GFRID SUMMIT Full agenda
WHEN	Wednesday, 14 June 2023, 09:00
WHERE	United Nations Complex (UNON), Gigiri, Nairobi, Kenya
WHO	Alvaro Lario, President of IFAD Cristina Duarte, United Nations Secretary-General Special Adviser for Africa Henriette Geiger, EU Ambassador to Kenya Ugochi Daniels, Deputy Director General for Operations, IOM Dr Patrick Ngugi Njoroge, Governor, Central Bank of Kenya
VIRTUAL	Webcast link will be sent on 13 June for journalists that have registered.

 

Media is kindly invited to cover the GFRID 2023 Summit. IFAD experts are available for interviews.

To facilitate access to the UN Complex, media houses are requested to RSVP to Linda Odhiambo [email protected] or 0780 320 073.

Journalists will be expected to present their Press cards at the gate to gain entry.

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Media Alert No: IFAD/05/2023

IFAD is an international financial institution and a United Nations specialized agency. Based in Rome – the United Nations food and agriculture hub – IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided more than US$24 billion in grants and low-interest loans to fund projects in developing countries.

A wide range of photographs of IFAD’s work in rural communities are available for download from its Image Bank.