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 2022, over 200 million migrant workers sent US$647 billion to 800 million family members in low- and middle-income countries. This is more than three times the annual flow of official development assistance and exceeds foreign direct investment.
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 Homereports provide an overview of trends and opportunities in different remittance markets, and analyse costs, regulations and main actors in the ecosystem.
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.
This report contains a series of key findings and actionable outcomes for both remittances and diaspora-impact investments. The report has been shared with the President of the UN General Assembly and all UN member states with the aim of informing and supporting discussions at the seventy-eighth session of the United Nations General Assembly, particularly the 2023 SDG Summit and the 2023 High-level Dialogue on Financing for Development.
“Making the most of remittances and diaspora investments can, paradoxically, curb the need for more to migrate. These flows are great contributors to the wellbeing of millions. Almost US$1.8 billion in remittances are flowing daily to low and middle-income countries, leveraging development opportunities. Half of that amount, US$900 million, is boosting agriculture and rural development” said Álvaro Lario, the President of IFAD at the opening session of the Global Forum on Remittances, Investment and Development (GFRID) in Nairobi today.
This webinar will launch the International Day of Family Remittances (IDFR) campaign and will set the stage for the upcoming Global Forum on Remittances, Investment and Development (GFRID) Summit 2023.
Remittances contribute hugely to the economic health and social development of developing countries – IFAD and IOM know this well. For this reason, the two agencies are teaming up at COP27 in Sharm El-Sheikh to highlight the importance of these payments.
For some time now, it has been difficult to find well-paid work in Moldova. Most of the good jobs available are concentrated in the cities, resulting in significant migration out of the country’s rural areas.
Every year, on 16 June, the International Day of Family Remittances (IDFR) is observed to raise further awareness on the abnegation and sacrifice of migrant workers, who support their families and communities of origin through the money they send back home, particularly in these times of crisis.
The Gambia country diagnostic has been prepared in accordance with the PRIME Africa goals, to provide more in-depth analysis and additional evidence for the areas of action identified in the country road map.