IFAD's US$35 million multi-donor Financing Facility for Remittances (FFR) aims to maximize the impact of remittances on development and promote diaspora engagement in their countries of origin. Through innovative investment, transfer and financially inclusive mechanisms, projects under the FFR have successfully addressed the main gaps affecting the link between remittances and development. As a result, poor rural households have been enabled to advance on the road to financial independence.
According to last estimations, around 250 million migrants sent around US$445 billion in remittances to developing countries in 2016, 40 per cent of which went to rural areas. IFAD estimates that one in seven people originating from a developing country either sends or receives international – or domestic – remittances. This amount is equivalent to around three times official development assistance (ODA) and exceeds foreign direct investment (FDI) inflows in most developing countries.
Thanks to its pilot projects – almost 50 in over 40 countries – and activities, and its prominent role in advocating for the recognition of the enormous impact that remittances have in the development of the migrants’ countries of origins, IFAD, through the FFR, is nowadays recognized as one of the leading actors in the areas of migration and development. The FFR was the first to publish global estimates of remittances in developing countries through the series of Sending Money Home reports, and continues to contribute to policy dialogue through actionable research, its www.RemittancesGateway.org web portal, and its Global Forum on Remittances, Investment and Development (GFRID). The last GFRID, organized jointly with the World Bank and the United Nations Department for Economic and Social Affairs (UN-DESA), was held in New York at the United Nations Headquarters in June 2017.