Presentation to EuroMed - Sending Money Home to Africa & Global Forum on Remittances 2009 - 2010 Call for Proposals - Specific project examples

1. Robert W. Meins
Remittances Specialist
Financing Facility for Remittances
International Fund for Agricultural Development
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

2.  Financing Facility for Remittances
 2009/2010 focus on Africa
 2010 call for proposals
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

3. Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

4. Kayunga
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.
Kampala 2) Send to a competing firm in
Kampala.
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

5. Kayunga
Remitter sends $ 200,-
- Transfer fees $40.00
- Exchange rate margin 1.28 %
- Fees on the receiving side $0
Actual amount received in
$ 157.44 (21.28%)
Kayunga
Remitter sends $ 200,-
- Transfer fees $19.03
Kampala - Exchange rate margin 1.15 %
- Fees on the receiving side $0
Actual amount received in
$ 176.68 (11.66%)
Kampala
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

6. Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

7.  $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
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

8.  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
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

9.  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…
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

10.  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.
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

11.  FONKOZE
 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
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

12. Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

13. Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

14. Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

15. 100
80
60
40
20
0
Congo Botswana Cote d'Ivoire Senegal Tunisia Kenya Gabon Djibouti Comoros Algeria
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

16.  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
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

17.  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
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

18.  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
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

19. 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 Open window (innovative projects in
investment (funds) other areas)
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

20.  Who can apply?
 Private sector
 Public sector
 Civil society
 Cross-sector partnerships encouraged
 Execution period: 2 years
 Deadline (short) concept proposals: June 7th 2010
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

21.  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
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

22.  Institutionally neutral platform
 Bringing together a broad range of information
 Documents
 News
 Discussion
 Agenda
 Profiles
 All are welcome to contribute
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

23. Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

24. Robert W. Meins
R.Meins@ifad.org
+39 06 5459 2059
www.ifad.org/remittances
www.remittancesgateway.org
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)

25.  Mexico
 Philippines
 Morocco
 Pakistan
Financing Facility for Remittances
International Fund for Agricultural Development (IFAD)