1) Remittances to Africa total over $60 billion annually, accounting for over 5% of GDP in 12 countries, though transfer costs are among the highest in the world. 2) IFAD aims to promote financial inclusion in rural areas, create conditions for productive investment of remittances, and strengthen rural remittance markets. 3) IFAD's operational approach includes research, expanding payment networks, supporting innovative payment mechanisms, promoting financial services linked to remittances, and public-private partnerships to boost investment and trade.

1. Promoting innovative remittance markets and
empowering 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 Networks
Cape Town, March 04, 2015Cape Town, March 04, 2015

2. Remittance and migration

3. Promoting innovative remittance markets and
empowering migrant workers
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

4. Remittances and DevelopmentRemittances and Development
Opportunities for IFAD and strategicOpportunities 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

5. Investment
Financial Inclusion
Market strengthening
Advocacy and Policy
Promote an enabling environment in
the marketplace
Promote market competition,
and innovation
Expand the variety and usage
of financial services
Promote investment
mechanism and opportunities
Remittances and Development Opportunities
A 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

6. 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.

7. Promoting innovative remittance markets and
empowering migrant workers
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

8. Promoting innovative remittance markets and
empowering migrant workers
and their families
African Postal Financial Services Initiative

9. Promoting innovative remittance markets and
empowering migrant workers
and their families
African Postal Financial Services Initiative
from assessments to operations

10. Promoting innovative remittance markets and
empowering migrant workers
and their families
Public 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

11. Promoting innovative remittance markets and
empowering migrant workers
and their families
www.ifad.org/remittanceswww.ifad.org/remittances
www.RemittancesGateway.orgwww.RemittancesGateway.org
Thank youThank you
International Fund for AgriculturalInternational Fund for Agricultural
DevelopmentDevelopment