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Maximizing the impact of remittances on development

Languages: Arabic, English, French, Spanish

Over the past two decades, remittances have emerged as an important contribution to the well-being of migrant families and the development of communities of origin.

In 2018, over 200 million migrant workers sent US$529 billion to their families in developing countries, representing more than three times the annual flow of official development assistance (ODA) and exceeding foreign direct investment (FDI) for the first time.

In 2017, the global number of international migrants was estimated to have reached 258 million.

Remittances are a private source of capital which should not to be equated with other international financial flows. However, they can help lift millions of migrant families out of poverty, touching the lives of up to one billion people, either as senders or recipients.

Remittances, the “human face of globalization”, allow migrants and their 800 million family members to improve their access to health, education and housing, thereby helping achieve their own Sustainable Development Goals (SDGs).

What we do

Since 2006, IFAD's multi-donor Financing Facility for Remittances (FFR) aims to maximize the impact of remittances on development, and to promote migrants' engagement in their countries of origin.

Through the financing of more than 60 projects in over 40 countries, the FFR is successfully increasing the impact of remittances on development by promoting innovative investments and transfer modalities; supporting financially inclusive mechanisms; enhancing competition; empowering migrants and their families through financial education and inclusion; and encouraging migrant investment and entrepreneurship.

As a result, remittance-receiving households in rural areas are becoming more financially independent and have growing access to financial services and products.

The FFR is also an important source of knowledge on remittances: global estimates of remittances in developing countries were published for the first time in its Sending Money Home reports, and currently available on RemitSCOPE, launched in 2018.

It contributes to policy dialogue through actionable research, the Remittances Gateway web portal, and the Global Forums on Remittances, Investment and Development (GFRIDs), organized every two years in collaboration with key development organizations and other international financial institutions (IFIs).

Over the past decade, these Global Forums have brought together international stakeholders from the public and private sectors, and the civil society, involved in remittances, migration and development. Focusing on a different region each time, they aim to raise awareness, promote dialogue, stimulate partnerships and create long-lasting synergies.

Past forums were held in:

The next edition of the Forum will take place in Nairobi (Kenya) on 15 to 17 June 2020, and will focus on Africa.

The FFR also coordinated the effort towards formal adoption of the International Day of Family Remittances (16 June) by the United Nations General Assembly. The day aims to raise awareness of the fundamental contribution of migrant workers not only to their families and communities back home, but also to wider sustainable development in their countries of origin.

In 2019, IFAD launched the #FamilyRemittances2030 campaign, to engage public and private sector entities in supporting one billion people reach their own SDGs by taking action towards reduction of transfer costs and provision of financial services for migrants and their families.

In early 2019, the FFR started implementation of a new initiative, the Platform for Remittances, Investments and Migrants' Entrepreneurship in Africa (PRIME Africa), aimed at maximizing the impact of remittances for millions of families in Africa, contributing to foster local economic opportunities in the migrants' countries of origin.

The FFR is cofinanced by IFAD, the European Union, the Grand-Duchy of Luxembourg and the Ministry of Foreign Affairs of Spain.

Spotlight

The impact of migrants' remittances and investment on rural youth

In an increasingly globalized world community, rural international migration is often characterized by engagements or links that migrants establish with their home countries, home towns and relatives in their country of origin through transnational economic and social activities. 

Related news

On International Day of Family Remittances, a reminder that 1 in 9 people globally are supported by funds sent home by migrant workers

June 2019 - NEWS
Remittances from international migrant workers to their families are expected to rise to over US$550 billion in 2019, up some $20 billion from $529 billion last year, Gilbert F. Houngbo, President of the International Fund for Agricultural Development (IFAD), stated today.

Call for Proposals: Closing the data gap towards an efficient remittances market in Africa

February 2019 - NEWS
IFAD’s FFR is launching a global Call for Proposals (CfP), aimed at identifying strong proposals and methodologies for collecting and analysing data on remittance markets in Africa, along with its most relevant corridors.

African post offices can be at the forefront of remittance and financial services in rural areas

June 2018 - NEWS
Postal services can play a pivotal role in delivering remittances, lowering the transfer costs and providing access to basic financial services in Africa, according to a report  released today by the International Fund for Agricultural Development (IFAD) and the European Commission (EC) on the occasion of the International Day of Family Remittances to be observed tomorrow.

Related publications

A manual in mobilizing migrant resources towards agricultural development in the Philippines

November 2019
This manual discusses the strategy, lessons learned and recommendations of Atikha in scaling up initiatives in mobilizing migrant resources towards agriculture development in the country. 

International Day of Family Remittances booklet 2019

June 2019
International Day of Family Remittances booklet for 2019

PRIME Africa

April 2019

Platform for Remittances, Investments and Migrants’ Entrepreneurship in Africa

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