Remittance flows to countries of origins of migrants are larger than official aid flows and foreign direct investment. Globally, they continue to provide a critical lifeline for the most vulnerable, notably in low-income countries.
Sustainable Development Goal 10 “Reducing inequality within and among countries” include a key target on remittances: reducing the transaction costs of such transfers to 3%. With the EU achieving this key target, migrants in the EU and their families and friends at home could now save up to € 1.5 billion in fees every year. This means a 25% costs reduction since 2015 and the European Commission has several initiatives aiming to facilitate these transactions and lower these costs even more. It is also working to accelerate the digitalisation of remittances and investment schemes via formal channels to further increase the social and economic impact of remittances.
The Commission is partnering with the International Fund for Agricultural Development (IFAD) and the African Union via the African Institute for Remittances. In partnership with IFAD “PRIME Africa” initiative, the Commission is supporting 15 innovative business initiatives in Africa on remittances, promoting digitalisation and financial inclusion, benefitting over 1 million people.
The Commission is also committed to have a better measurement of official remittances and is actively participating into the World Bank working group on improving remittances statistics via EUROSTAT. The Joint Research Centre is today releasing a report on how to improve remittances estimates and forecasts.
Globally, 200 million migrant workers send a share of their earnings to help feed, shelter, educate and support back home the health of their family members in more than 125 nations. In 2022, remittance flows to low- and middle-income countries are expected to reach €589 billion.
According to last available World Bank and EUROSTAT data the remittance flow from EU to low and middle-income countries was at € 64.8billion, whereas remittance from EU to the world was at €110 billion. EU sent remittances account to 11% of the total flows received by low and middle-income countries and benefit around 105 million people living there.
- Publication date
- 16 June 2022
- Directorate-General for International Partnerships