Senegal is a developing country which faces significant challenges to mobilize resources to finance its development and reduce poverty. At the same time, financial flows from migrant remittances continue to grow and have been above USD 1 billion a year for the last 8 years. Unfortunately, the government has not developed innovative strategies to tap into this significant source of finances. The main purpose of this project is to explore and propose an innovative mechanism to access and use remittances for financing development in a public private partnership (government and migrants) model.

1. WB/MOOC – Financing for Development
Final Project:
Expanding access to social services through
more strategic mobilization and use of
remittances in Senegal
Khassoum Diallo
December 2015

2. Problem statement
Senegal is a developing country which
faces significant challenges to mobilize
resources to finance its development
and reduce poverty. At the same time,
financial flows from migrant
remittances continue to grow and have
been above USD 1 billion a year for the
last 8 years (WB, 2014), representing
over 10% of GDP and twice the ODA.
Unfortunately, the government has not
developed innovative strategies and
modalities to tap into this significant
source of private finances which is
primarily used for non-productive use
(including daily consumption), rent,
and payment of education and health

3. Purpose of this project
For the WB/MOOC/FFD course, the main
purpose of this final project is to explore and
propose an innovative mechanism to access and
use remittances for financing development in a
public private partnership model.
A classroom in a remote area in Senegal – See also (here)

4. 0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Trends in Remittances inflows Senegal 2000-2012
Source World Bank data 2014 (source)

5. 58.5
9.4
3.6
12.6
2.5
0.2
1.3
12.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Daily consumption Health Education Rent Clothes Car Business Others
Main uses of remittances in Senegal in 2008: % share of all transfers
Source: WB, 2011 report

6. Other major use of remittances
Migrants are organized in groups
based on community of origin
(region, village, districts etc.) and use
part of their remittances to build
schools and health posts/centers in
their communities when the
government in incapable of provide
basic education and health services
for many reasons, including lack of
funding or poor prioritization
criteria. In addition to building
schools and health posts, migrant
groups also hire or cost share the
payment of nurses and teachers for
running the services.
Use of motorbikes to
provide health services in
remote areas in Senegal

7. Obstacles: Selected social sector challenges in Senegal:
Source UNICEF SOWC 2012
• Out of school children
38% in 2014
• Birth registration for the
poorest: 20% in 2010
• Malnutrition - % of
stunted children 20%
• Water - % of rural
population with no access
to potable water – 48%
• 30% of children not
immunized by 1 year age
Ambulance in remote Senegal

8. My proposal: A PPP model
Because:
 Senegalese migrant and diaspora groups are well established and organized
by village, districts and region of origin;
 There within the Ministry of Foreign Affairs a division in charge of the
migrants;
 Most migrants and their relevant groups and leaders in different countries
are known;
Proposal: The Government negotiates with migrant groups in order to use part
of the remittances and cost share the expansion of social services in their
communities of origin.
Estimation: Even with an average of 10 % of the remittances, the estimated
amount will be USD 160 million (2012 remittance figure is USD 1.6 billion)
which is 80 billion CFA (currency of Senegal). This is equivalent to 60% of the
annual budget of the ministry of Health for instance (135 billion CFA in 2014).
This would be a significant amount for the Government

9. Implementation and feasibility of my proposal
A number of steps and actions could be put in place
 The Government put in place an online system to register all migrants and migrant
groups in major migration countries (France, Spain, Italy, Germany, Gabon, Cote
d’Ivoire, Gambia, Mauritania, Mali, DRC, USA, Canada capture some 80% of senegalese
diaspora) to put in place an online mechanism to update the registration of migrants
and migrant groups.
 The Government ask its embassies and consulates in major migration countries to
update registration of migrants and their respective groups. This would come with
incentives such as: (i) free renewal of passports and other certificates (birth, death,
marriages) and; (ii) putting in place subsidies for repatriation of dead compatriots for
burial at home which is a significant share of migrant groups budgets
 Explanation and sensitization of migrant leaders on the proposal
 Needs assessment (identification of remote and non-served communities that are
under-served in terms of social services
 Jointly with migrant groups that are willing to join the project, establishment of annual
or bi-annual plans for expansion of social services (health, education, water etc.) in
their communities
 Elaboration of mechanisms for gathering migrants contribution
 Agreement on control and evaluation mechanisms

10. Advantages and added value of the project
For the Government For migrant communities For migrants
- Access to significant
additional financial
resources
- Expansion of social
services in under-served
areas
- Good registration and
understanding of the
needs of migrants and
their communities
- Putting in place good
governance mechanisms
- Better use of limited
financial resources, in
particular, investment in
other communities that
don’t have migrant
groups - Equity
- Increased access to social
services within the
community
- Pride and strengthened
cohesion of families of
contributing migrants
- Better use of their
remittances for social
development, in addition
to consumption
- Awareness and
satisfaction to contribute
to the social
development of their
communities of origin
- Benefiting from
incentives put in place by
the Government (free
documentation,
subsidies)

11. Sources and references
Remittances in Senegal WB report
http://siteresources.worldbank.org/EXTDECPROSPECTS/Resources/476882-1157133580628/RMA_Ch8.pdf
WB - Data on remittances
http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/0,,contentMDK:22759429~pagePK:64165401~piPK:64165026~theSitePK:47688
3,00.html
Les migrants sénégalais en Italie
http://www.memoireonline.com/05/11/4537/Les-migrants-senegalais-en-Italie.html
Government of Senegal - Budgets
http://www.gouv.sn
Remittances: Size and origin: A survey in Senegal
http://www.seneweb.com/news/Economie/envoi-des-migrants-trois-regions-du-senegal-ont-recu-400-milliards-fcfa-en-2011_n_104504.html
Ambulance offered by a City in Italy to support a village in Senegal thanks to
efforts of migrants from the village
https://www.aps.sn/actualites/societe/sante/article/la-commune-de-ndiob-receptionne-une-ambulance-medicalisee