remittance market in africa: opportunities and challenges

Promoting innovative remittance markets andempowering migrant workers

and their families

International Fund for Agricultural DevelopmentInternational Fund for Agricultural Development

Remittance market in Africa: opportunities and challenges

IFAD’s strategic approaches and operational considerations

African Conference on Remittances and Postal NetworksAfrican Conference on Remittances and Postal NetworksCape Town, March 04, 2015Cape Town, March 04, 2015

Remittance and migration


and their families

Remittance and migration in Africa

Key features of remittances to and within Africa•More than 30 million African people living abroad•over 60 US$ billion to Africa•over 5% of GDP in 12 African countries•Costs are some of the highest in the world (even up to 20% in rural areas)•Migrants invest at least US$ 5 billion in local businesses•More than 10 US$ billion imported and consumed from locally produced agricultural commodities

Remittances and DevelopmentRemittances and DevelopmentOpportunities for IFAD and strategic Opportunities for IFAD and strategic objectivesobjectives

1 2

Promote Financial Inclusion

in rural areas

3

Create a more conducive

environment for Productive

Investment of savings and

remittances in rural areas

Strengthen the remittance rural market

Investment

Financial Inclusion

Market strengthening

Advocacy and Policy

Promote an enabling environment in the marketplace

Promote market competition, and innovation

Expand the variety and usageof financial services

Promote investment mechanism and opportunities

Remittances and Development OpportunitiesA stepped operational approach to achieve scale

- Research and Market data- Surveys- G20,Global Fora

- Expand payment networks (MFI, Postal, Banks, MNO )-Support innovative payment mechanisms adoption

- Financial services linked with remittances (savings, credit, Insurance, housing.)- Financial literacy for migrants and families

- Public, Private, and People Partnerships - PPPp- Diaspora investment (SMEs, Agriculture, etc.)- Nostalgic trade- Securitization / Diasporas Bonds

and Objectives

Beyond the market and remittances: Impact and opportunities for development

• Promote effective and efficient regulation in the marketplace toward lowering transaction cost

• Empower market actors and promote competition (MTOs, Com. Banks, MFIs, postal networks…)

• Support adoption and integration of digital technologies and delivery channels (Mobile, card-based, etc..)

• Promote financial inclusion through expansion of access and usage of financial services (linking remittances services to savings, loans, insurance, etc..)

• Link and promote implementation of scalable models of investments for migrants

and their families.


and their families

The rural perspective:•40 % of remittances goes to rural areas•equal to 4 times the ODA in agriculture•80% of post offices are in less populated areas

Beyond the market and remittances: Impact and opportunities for development


and their families

African Postal Financial Services Initiative


and their families

African Postal Financial Services Initiative

from assessments to operations


and their familiesPublic Sector Day - 16 June

Private Sector Day – 17 June

Civil Society and Development Organizations Day – 18 June

Special sessions and workshops – 19 June

Remittance market, technology fair, Remittance market, technology fair, and innovation awardsand innovation awards


and their families

www.ifad.org/remittanceswww.ifad.org/remittances

www.RemittancesGateway.orgwww.RemittancesGateway.org

Thank youThank you

International Fund for Agricultural International Fund for Agricultural DevelopmentDevelopment

http://www.ifad.org/remittances

http://www.remittancesgateway.org/

remittance market in africa: opportunities and challenges

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