10 03 24 meins amsterdam euromed

Financing Facility for RemittancesInternational Fund for Agricultural Development (IFAD)

MOBILIZING REMITTANCES FOR DEVELOPMENT

EUROMED MAR. 24 2010

Robert W. Meins

Remittances SpecialistFinancing Facility for RemittancesInternational Fund for Agricultural Development


Topics

Financing Facility for Remittances

2009/2010 focus on Africa

2010 call for proposals


The challenge:Remittances to rural areas


A transfer of $200 is sent from the UK to Kuyunga, Uganda, 50 kilometers from the capital Kampala.

The sender has two options:

1) Send directly to Kuyunga using Western Union.

2) Send to a competing firm in Kampala.

Kayunga

Kampala


Kayunga

Remitter sends $ 200,-

- Transfer fees $40.00

- Exchange rate margin 1.28 %

- Fees on the receiving side

$0

Actual amount received in Kayunga

$ 157.44 (21.28%)

Picking up remittances in rural areas:

Remitter sends $ 200,-

- Transfer fees $19.03

- Exchange rate margin 1.15 %

- Fees on the receiving side

$0

Actual amount received in Kampala

$ 176.68 (11.66%)

Kampala


The Financing Facility for Remittances


Financing Facility for Remittances $18 million dollar multi-donor fund

Consultative Group for Assistance to the Poor European Commission Government Luxembourg Government Spain Inter-American Development Bank UN Capital Development Fund, and Housed at the International Fund for Agricultural

Development

FFR manages 40 projects in 38 countries around the globe

Open to private, public and civil society organizations


What we do… Annual Calls for Proposals Global Forum on Remittances “Sending Money Home” series of studies Together with gov. of France, financed a remittances

initiative managed by the AfDB RemittancesGateway.org portal Dissemination & consultation

G8 Working group on remittances European Parliament Global Forum on Migration & Development Conferences


We explore innovative proposals…

from around the world…

driven by public/private and civil society

groups…

covering a broad range of interventions…

but squarely related to the financial side of

migration…

for this reason we have a strong market and

private sector focus…


Why we do it…

Lower the cost of remittances through competition

Improve capillarity, service rural areas Broaden the scope of financial services Bank the unbanked

… to empower migrant workers and their families to advance on the road to financial independence.


ProjectsFONKOZE

Microfinance (Haiti) Solutions to rural challenges helped after

earthquake Universal Postal Union

Postal networks (Senegal) HIRDA (Netherlands-Somalia)

Migrant organization Philippine Women’s Council (Italy –

Philippines) Migrant women’s group focusing on investment


Global Forum on Remittances &Sending Money Home to Africa


Payout locations per type of RSP (%)


MTO payout locations per company (%)


Concentration of post offices in rural areas(as a % of locations)

Congo Botswana Cote d'Ivoire

Senegal Tunisia Kenya Gabon Djibouti Comoros Algeria0

20

40

60

80

100


Global Forum on Remittances

2007: Latin America (w/ IDB) “Sending Money Home” First global estimate of remittances

2009: Africa (w/ AfDB) “Sending Money Home to Africa” Regulatory & market blockages and opportunities


GFR 2009: Tunis recommendations Increase competition

Empower market actors

Achieve effective and efficient

regulation

Adopt new technologies

Expand access to financial services

Make more financial services available in

rural areas


2010 Call for proposals

Grant financing for projects related to maximizing the development impact of remittances

up to $250,000 for projects

up to $500,000 for mobile financial services


Topic areas

Mobile financial services

Housing

Postal networks (Micro-) Insurance

Microfinance networks Migrant pensions and other government-to-person payments

Financial services innovations

Securitization

Migrant entrepreneurship and investment (funds)

Open window (innovative projects in other areas)


Basic information

Who can apply? Private sector Public sector Civil society

Cross-sector partnerships encouraged Execution period: 2 years Deadline (short) concept proposals: June

7th 2010


Must have Legal status in country where you operate Audited financial statements

Act on behalf of themselves (not as an intermediary)

Provide counterpart 10-30% non-profit 50% for for-profit (minimum half of which in

cash) Project must be in IFAD member count


RemittancesGateway.org

Institutionally neutral platform Bringing together a broad range of

information Documents News Discussion Agenda Profiles

All are welcome to contribute


QUESTIONS & ANSWERS


Contact information…

Robert W. [email protected]+39 06 5459 2059

www.ifad.org/remittanceswww.remittancesgateway.org


Countries focusing on diaspora Mexico Philippines Morocco Pakistan

10 03 24 meins amsterdam euromed

Documents

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agricultural development

capital development

agricultural development

remittances initiative

cost of remittances

proposals financing

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