Remittances

The funds sent home by migrant workers are a lifeline for rural families, helping to build resilience and support sustainable development. Promoting remittances can accelerate rural transformation.

Context

Globally, around 200 million migrants send remittances home, reaching over 800 million family members. While individual remittances average just US$250 a month, collectively, these flows are three times greater than global official development assistance.

By 2030, migrant workers will send over US$ 5 trillion back to their communities of origin in low-income countries. Much of this money will go to rural areas, where remittances can help lift millions of people out of poverty, and are spent on education, healthcare and entrepreneurship.

Despite their scale and potential, remittances can be costly and hard to access. On average, 6 per cent of the amount sent goes towards currency conversion costs and fees. This is twice the Sustainable Development Goal target of 3 per cent.

Opportunities

Migrant workers and their families are crucial for achieving the Sustainable Development Goals.

Over the past 20 years, remittance flows have increased five-fold. This growth continued even during economic downturns and pandemics.

Innovation and digitalization have hugely advanced financial inclusion. Digital remittances are safer, more convenient and more affordable. For example, the cost of digital remittances is about 4.6 per cent of the total amount, with costs continuing to fall.

Linking migrants and their rural families to opportunities to invest in, establish and grow enterprises can support rural development and create jobs, especially for women.

What IFAD does

Working with government and private sector partners, IFAD finances projects that spur innovation and improvements in remittance markets. We increase access, competition and entrepreneurship, as well as educating migrants and their families.
Our Financing Facility for Remittances has financed over 75 projects in more than 50 countries. These projects have supported more than 1.65 million people access financial education, financial products and services, and diaspora investment.
We advocate for improved national and international remittance markets.
IFAD leads the Global Forum on Remittances, Investment and Development which brings together global stakeholders to discuss trends, opportunities and challenges.
The International Day of Family Remittances is held on 16 June to recognize the contributions of migrant workers and highlight the vital role of remittances in improving the livelihoods of millions worldwide.
RemitSCOPE collects data on remittances, remittance markets and information on regulations for countries in Africa and South and Central America. It helps stakeholders such as regulators and remittance service providers understand market trends, opportunities and barriers.