Over $600B sent home annually via remittances and diaspora investments

Despite the global economic turmoil triggered by the pandemic and ripple effects of the war in Ukraine, the hard-earned money sent by migrant workers to their families continues to be one of the most reliable sources of income for rural people in low and middle-income countries. Even in times of crisis, remittance flows have allowed people in developing countries to be resilient and even prosper. Last year, the money sent home exceeded US$600 billion annually, half of which went to poor rural areas.

"This phenomenon remains hidden in plain sight despite its magnitude and relevance to achieving the Sustainable Development Goals (SDGs). We know that the Official Development Assistance (ODA) and foreign direct investment to these countries is a smaller total amount than what migrants send to their loved ones back home," says Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at the UN's International Fund for Agricultural Development (IFAD).

Co-organized by IFAD, the UN Office of the Special Adviser on Africa (OSAA), and the World Bank Group, the Global Forum on Remittances, Investment and Development (GFRID) sets out to change mindsets of stakeholders, to fully recognize and harness the enormous potential of remittances and diaspora investments towards achieving the SDGs.

Global experts will discuss how to make sending money home cheaper, safer and faster, as well as how to build bridges to facilitate diaspora investments in the countries of origin. The digital remittance revolution will be a hot topic in lead up to 2030, as digital channels offer a vast array of possibilities to connect remittance flows to rural finance. This means boosting access to savings, credit and insurance, basic financial products that can be life-changing in poor rural areas.

Launch of the new RemitSCOPE Africa outcome report

The 2023 GFRID Summit will have a special focus on Africa, where 17 of its 54 countries rely on remittances for at least 4 per cent of GDP. The new RemitSCOPE Africa outcome report will be launched at the Forum (14 June, 11.30-12.00). Compiling the most up-to-date and trusted remittance and remittance-related data across 54 countries in Africa, and covering up to 140 different indicators per country, the RemitScope Africa report looks at the drivers, trends, impact and potential of remittances, and provides background information on details such as migration, remittance flows, pricing trends, financial inclusion, access, and the competitive environment.

Media is kindly invited to cover the GFRID 2023 Summit.