Reports

With its goal to reduce costs and scale formal flows, the UK Department for International Development (DFID) and its Africa-based partner, FSD Africa, are interested in exploring whether there are ways of accelerating the migration of remittance senders from cash to digital channels. Key to this is understanding the reasons behind a preference for cash, the main motivators for change, any barriers that exist and lessons for digital service providers. To seek answers to these questions, in 2017 DMA conducted eight focus groups discussions (FGDs) across seven African communities based in London.

Encouragingly, the focus group discussion suggest that the trend to shift from the cash/agent model to online money transfer services from the UK to Africa is already underway, especially within certain African diaspora communities, with the findings providing key insights into drivers and triggers for behavioural change and a blueprint to follow. 

Diaspora engagement is a key tool to support and strengthen efforts of mobilising the diaspora and effectively harnessing their power for development. It is also a strategic priority for the African Union (AU). In this project, DMA Global developed a diaspora engagement self-assessment tool for AU Member States to determine their level of diaspora engagement. The tool is to be adopted by the diaspora focal points of AU Member States. This report provides an overview of the project, methodologies for scoring and weighing, and highlights the results from the 11 AU Member States that took part in the pilot. 

The KNOMAD Working Paper Series disseminates work in progress under the Global Knowledge Partnership on Migration and Development (KNOMAD). A global hub of knowledge and policy expertise on migration and development, KNOMAD aims to create and synthesize multidisciplinary knowledge and evidence; generate a menu of policy options for migration policy makers; and provide technical assistance and capacity building for pilot projects, evaluation of policies, and data collection.

DFID recognizes the importance of remittances to developing countries, in particular for those in poverty. It recognizes that remittances may finance food, housing, health and education and also sometimes investments. The UK is keen that remittance costs are low and remittance channels also need to be secure and legitimate. For this, an open and competitive market of reliable players and participation of both banks and money transfer operators is essential as is clear information and rights for remitters. DFID supports work both in the UK but in particular abroad both on regulation and with the market players.

According to the World Bank, global remittances in 20172 totaled USD 595.7 billion, 75.6 percent of which ($450.1 billion) correspond with remittance flows to low- and middle–income countries. This volume marks an increase of more than 50 percent since 2007, and crossborder remittances now account for more than five percent of GDP for 47 developing countries.

RemitSCOPE, a new website portal, is designed to provide data, analyses and remittance-market1 profiles on individual countries or areas. In coordination with the Global Forum on Remittances, Investment and Development 2018, RemitSCOPE is being launched to provide market profiles for 50 countries or areas in the Asia and the Pacific region. The additional four regions will be included gradually: Africa, Latin America and the Caribbean, Europe, and Near East and the Caucasus.

This report assesses the UK to Ghana remittance corridor, addressing both the UK and Ghanaian regulatory environments, the products and services available on the market and the remittance patterns of the UK-based Ghanaian Diaspora. Remittances go hand-in-hand with poverty reduction and will continue to be important for Ghana’s development as it makes the transition to a Middle-Income Country. A primary research study is conducted comprising of interviews with money transfer operators (MTOs) offering a Ghanaian service and a survey of the Ghanaian Diaspora. From this, challenges and opportunities are identified, and a number of recommendations are made to different stakeholders, each with varying associated costs and levels of impact.