51³Ô¹Ï

Digital remittances towards financial inclusion and cost reduction

The International Day of Family Remittances (IDFR) highlights the economic impact of this money on households, communities, and nations, and recognises the sacrifice, separation and generosity often involved.

By 2030, it is projected that over US$ 5 trillion will be sent home by migrants to low- and middle-income countries (LMICs), with much of this money going directly to rural areas where 80 percent of the world¡¯s poor live, face food shortages, and the impacts of climate change.

This money is sent by migrant and diaspora communities to directly support millions of families in achieving the Sustainable Development Goals (SDGs) by contributing to their poverty alleviation, education, healthcare, small business development, gender equality, and rural economic growth.

IDFR 2023-2024 Campaign

The IDFR campaign aims to support the observance and dissemination of actions in the framework of the decennial #, which supports one billion people reaching their SDGs.

The theme of the 2023-2024 #FamilyRemittances campaign is ¡°Digital remittances towards financial inclusion and cost reduction,¡± highlighting the positive effects of digitalization in reducing costs, improving access, and advancing financial inclusion.

This initiative acknowledges the contributions of migrants and emphasizes the need to ensure inclusivity and access to digital remittances and financial services for all, in line with the SDG universal value of ¡°leaving no one behind.¡±

On 16 June, 2024, we recognize the contributions that migrants around the world make to their families, friends, communities, and countries through the money they send home. Help families achieve their own SDGs.

Celebrating the Successes

• Remittance costs have decreased significantly since 2009, with digital remittance services being even cheaper
• Access to digital remittance and financial services globally has also improved, driving financial inclusion
• Efforts to reduce gender gaps in account ownership were successful, with the gap falling to 6 percentage points in developing countries

Still Work to Do To ¡®Leave No One Behind¡¯

• SDG10.c is not on track for 2030, with the remittance costs still too high
• The price of remittances varies regionally, and 1.4 billion adults worldwide are still unbanked
• Most unbanked adults worldwide are women, and gender, income, age, education, and workforce gaps remain in every region
• The rural-urban account ownership gap varies widely, and a significant portion of the global population remains unconnected to the Internet
• 760 million people worldwide do not have access to electricity and close to 40% of adults in LMICs do not have an ID

Improving 800 million lives

The International Day of Family Remittances (IDFR) is a universally-recognized observance . The Day recognizes the contribution of over 200 million migrants to improve the lives of their 800 million family members back home, and to create a future of hope for their children. Half of these flows go to rural areas, where poverty and hunger are concentrated, and where remittances count the most.

Through this observance, the 51³Ô¹Ï aims to bring greater awareness of the impact that these contributions have on millions of households, but also on communities, countries, and entire regions. The Day also calls upon governments, private sector entities, as well as the civil society, to find ways that can maximize the impact of remittances through individual, and/or collective actions.

The IDFR is now fully recognized at the global level, and included as one of the a key initiatives to implement the , also calling for the reduction of remittance transfer costs, and greater financial inclusion through remittances. The Day also promotes achievement of the Sustainable Development Goals (SDGs) and furthers the 2030 Agenda for Sustainable Development.

Remittance flows trends

In 2023, international remittances to low- and middle-income countries (LMICs) amounted to US$669 billion. Such average monthly transfers of US$200-US$300 sent by migrant workers support many basic households and prove transformational for both households and local communities, enabling many families to achieve their ¡®own¡¯ Sustainable Development Goals (SDGs).

However. the cost of transferring US$200 across international boundaries to LMICs is still high ¡ªaveraging 6.2% in the fourth quarter of 2023. Mobile providers offer the best rates (4.5%), but less than 1% of transactions are made through digital channels. Remittance services are now much quicker and less expensive thanks to digital technologies.

For further information visit: familyRemittances.org and IFAD.

Through the IDFR observance, the 51³Ô¹Ï aims to raise awareness of remittances' impact on millions of households, communities, and countries.

The Day calls upon governments, the private sector, development agencies, regulators, and civil society to commemorate the occasion and to share their commitment and contributions to maximizing the impact of remittances through individual and collective action.

This year, IFAD will host a series of concurrent events leading up to the IDFR:

• Nairobi, Kenya: Friday, 7 June 2024
• Kathmandu, Nepal: Monday, 10 June
• Banjul, The Gambia: Thursday, 11 June
• Dakar, Senegal: Tuesday, 11 June 2024
• Rabat, Morocco: Wednesday, 12 June 2024
• Accra, Ghana: Thursday, 13 June
• Kampala, Uganda: Thursday, 13 June

The observance theme focusses on ¡°Digital remittances towards financial inclusion and cost reduction¡°, celebrating the achievements to date and committing to continue to work collaboratively and in partnership to ¡°Leave No One Behind¡°.