In 2021, migrants from around the world transferred more than 602 billion dollars to their families in low- and moderate-income countries, the International Fund for Agricultural Development (IFAD) reported Thursday.
Between 2022 and 2030 this figure could reach a cumulative amount of about 5.1 trillion euros (almost 5.4 trillion dollars), according to an IFAD report, that is, double the entire Gross Domestic Product (GDP) of Africa in 2021 , according to the same source.
“Despite forecasts that the COVID-19 pandemic would reduce the sum of remittances from migrants to their families, these amounts registered an increase of 8.6% in 2021. And this was thanks, in large part, to the increase in 48% of money transfers via mobile phones“, especially due to the pandemic and the closure of borders, said IFAD, a UN organization based in Rome.
Most of the amounts sent were cash transferred by customers, and transfers through cell phones represented 3% of the total, but they are increasing.
“Cash is still up, but losing ground,” said Pedro de Vasconcelos, an IFAD official.
“The digitization of transfers, especially through the use of mobile phones, represents a great opportunity to strengthen rural development, since half of these sums go to rural areas,” said Gilbert Houngbo, President of IFAD.
Money remittances help lift people out of poverty, put food on the table, pay school fees and cover health costs,” Houngbo recalled.
The International Day of Family Remittances, proclaimed by the United Nations General Assembly, is celebrated annually on June 16. This day commemorates the contribution of the more than 200 million migrant women and men who send money to their more than 800 million relatives in their countries of origin.
