Maximizing the impact of remittances on development

Remittances and development

Remittances are a crucial contribution to the well-being of migrants’ families and communities back home. They help lift millions of migrant families out of poverty, and allow them to improve their access to health, education and housing.

In 2023, over 200 million migrant workers sent US$669 billion to 800 million family members in low- and middle-income countries.

Maximizing the impact of remittances

Since 2006, IFAD's multi-donor Financing Facility for Remittances (FFR) maximizes the impact of remittances on development and promotes migrants' investment in their countries of origin.

With almost 70 projects in over 50 countries, the FFR promotes innovative investments and transfer modalities, supports financially inclusive mechanisms, enhances competition, provides financial education and inclusion, and encourages migrant investment and entrepreneurship.

Research and partnerships

The FFR conducts dedicated research on global and regional remittances flows. Its Sending Money Home reports provide an overview of trends and opportunities in different remittance markets, and analyse costs, regulations and main actors in the ecosystem.

The FFR is highly involved in global and regional processes on remittances and development, including the Global Forum on Migration and Development, the G20 Global Partnership for Financial Inclusion and the Global Remittances Working Group.

Events

The IFAD-led Global Forum on Remittances, Investment and Development (GFRID) Summits bring together stakeholders across sectors to create partnerships and synergies. It is one of the actionable tools to implement the Global Compact on Migration (objective 20).

The FFR coordinated efforts towards formal adoption of the International Day of Family Remittances (16 June) by the United Nations General Assembly. The day raises 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.

Initiatives

Co-financed by the European Commission, the Platform for Remittances, Investments and Migrants’ Entrepreneurship (PRIME) maximizes the impact of remittances, advances digital financial inclusion, and fosters economic opportunities and sustainable development in migrant workers’ countries of origin.

PRIME Africa finances and supports innovations, partnerships and scalable products that promote cheap and fast remittance transfers in seven African countries.

PRIME Central Asia promotes faster, safer and cheaper remittance transfers in Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

In parallel, the FFR is implementing the Diaspora Investment in Sustainable Rural Youth Entrepreneurship in Mali which supports investments from the Malian diaspora to their home country.

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The FFR is co-financed by the European Union, the Grand-Duchy of Luxembourg, Spain’s Ministry of Foreign Affairs, the Swedish International Development Cooperation Agency and the German Agency for International Cooperation for the GFRID Summits.