Streamlining remittances to have a better impact on development, says IOM to African countries

General News on Thursday, February 21, 2019

Source: Graphic.com.gh

2019-02-21

The International Organization for Migration (IOM) has called on African countries to tap the flow of remittances to boost development.

IOM East and Horn of Africa Regional Director Jeffrey Labovitz said international remittances were a prominent part of the agenda. global politics lately, since they accounted for more than three times the size of official development badistance (ODA). ), otherwise known as donor funding.

According to a new World Bank report, remittances to sub-Saharan Africa increased by 11 percent, from $ 34 billion in 2016 to $ 38 billion in 2017, a trend that the report says will continue to grow this year.

The report estimates that nearly 75% of remittances are spent on consumption, which greatly benefits households and communities. However, more could be done to maximize the remaining 25% by promoting financial inclusion and promoting initiatives to help people manage the funds. to control the impact of remittances on development.

At a three-day regional thematic meeting on remittances in sub-Saharan Africa, Labovitz said excluding those from China, remittances were also significantly larger than investment. foreign direct in low- and middle-income countries.

The meeting aimed to create a platform for sharing information and exchanging knowledge for 80 participants involved in IOM's work on migration in the regions of Africa. 39, Africa, Caribbean and Pacific and the European Union, including migration experts and representatives of African governments sub-union, UN agencies and NGOs working in the field of funds and the mobilization of the diaspora.

Transfer cost

The discussions will also generate recommendations for the sub-Saharan region and link the results of the ACP-EU migration action program to relevant processes for the ACP-EU dialogue on migration and development at regional and local level. world.

Mr. Labovitz said that despite this increase, sub-Saharan Africa remained the most expensive country in the world to send money, with an average cost of 9.4% of the amount of the transfer and well beyond above the goal of Sustainable Development (SDG). reduce the transaction costs of remittances by less than 3% by 2030.

Migration issues

Ms Diana Acconcia, Head of the Delegation of the European Union, said that migration issues were of paramount importance for African and European countries, since the Agenda 2030 and the European Consensus on confirmed that migration is an integral part of global and European priorities. development policy.

"The Africa and Europe Alliance for Sustainable Investment and Employment is a key element of the Common Approach to Migration, a shared responsibility to address the root causes of irregular migration, effectively manage borders to prevent and combat smuggling and trafficking in human beings, "she said. I said.

Acconcia said Ghana and the EU have excellent cooperation on migration management in global and regional frameworks, such as the global compact for safe, orderly and regular migration, among others.

She said the EU supports African countries in developing diaspora engagement policies and the diaspora's engagement in the development of their countries of origin and community. commended Ghana for creating a Diaspora Affairs Office.

Ghana

For his part, Akwasi Awuah Ababio, director of the Diaspora Affairs Office in the President's Office, said Ghana had $ 5 billion in remittances in 2016, three times more than direct investment. foreigners.

He said reducing remittance costs in Ghana was very important for the government, which was working to eliminate cost-inefficient corridors.

Ababio said the government is also committed to harnessing the potential of remittances for the country's development.