A Session 4, Panel 2: I Financing the implementation of - - PowerPoint PPT Presentation

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Second IDM 2016 workshop on Assessing progress in the implementation

• f the migration-related SDGs

11th-12th August 2016, Geneva, Switzerland

Session 4, Panel 2: Financing the implementation

• f migration-related targets

Amadou CISSE

Interim Executive Director, AIR amadou.cisse@au-air.org

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• Key message..

 Inclusion of target 10.c in the SDGs means a change of mindset and a call for action and support for ongoing initiatives to reduce remittance transfer costs …  though some progress have been made, baseline figures on some corridors worry …

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• Key message (..end)

 … and there is need for better coordination and financing mecanisms

• f programmes…

 … which should be people-oriented.

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• Target 10.c:

By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent

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Why target 10.c? High volume

• f

Remittances flows to Africa in 2015… US$65.7 billion

11.3%

• f total world

remittances.

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… and high remittance transfer costs.

8.88%

Average cost to Africa

+5.88% Higher

SDGs target

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• Target 10.c: meaning

 Recognizance of potential impact  Support for ongoing initiatives - establishment of the African Institute for Remittances (AIR) - to reduce remittances transfer cost.

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• Target 10.c related programmes

 Objectives: reduction of remittances transfer costs to and within Africa.  How? First, identify corridors of focus: a few corridors selected on the basis of three criteria: volume, cost and impact

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Saudi Arabia-Egypt, Arab Rep. (6.85%) United States-Nigeria (4.39%) United Kingdom-Nigeria (5.28%) Kuwait-Egypt, Arab Rep. (2.78%) Cameroon-Nigeria (14.06%) South Africa-Lesotho (15.84%) South Africa-Nigeria (20.81%) Saudi Arabia-Sudan (1.6%) Nigeria-Benin (22.96%) Nigeria-Mali (23.13%) United States-South Africa (10.44%) Tanzania-Kenya (13.07%) Canada-Kenya (10.16%) South Africa-Mozambique (17.98%) Nigeria-Togo (16%)

• 5.00

10.00 15.00 20.00 25.00

• 1,000.00

2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00

Average cost of sending US$200 per corridor

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• The most expensive

corridors are all intra- Africa corridors

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Saudi Arabia-Egypt, Arab Rep. (7587 ; 6.85%) United Kingdom-Nigeria (3719 ; 5.28%) France-Morocco (1976 ; 5.29%) France-Algeria (1638 ; 8.34%) Spain-Morocco (1580 ; 5.56%) France-Tunisia (1380 ; 6.88%) Qatar-Egypt, Arab Rep. (1056 ; 5.93%) United States-Egypt, Arab Rep. (1012 ; … Italy-Nigeria (945 ; 9.82%) Italy-Morocco (878 ; 6.38%) Ghana-Nigeria (806 ; 7.86%) Spain-Nigeria (695 ; 9.12%) Germany-Nigeria (637 ; 8.35%) Italy-Egypt, Arab Rep. (556 ; 7.75%) United States-Ghana (536 ; 5.89%) United Kingdom-Kenya (519 ; 6.62%) United States-Kenya (469 ; 7.54%) Belgium-Morocco (437 ; 5.2%) Italy-Tunisia (394 ; 8.9%) Netherlands-Morocco (386 ; 7.23%) France-Madagascar (373 ; 6.78%) Bahrain-Egypt, Arab Rep. (359 ; 6.51%) United States-Liberia (343 ; 5.25%) Israel-Morocco (338 ; 9.02%) Italy-Senegal (296 ; 5.68%) United Kingdom-Uganda (287 ; 8.5%) Germany-Morocco (273 ; 8.63%) United Kingdom-Ghana (257 ; 5.79%) United Kingdom-South Africa (231 ; 7.65%) United States-Ethiopia (197 ; 5.64%) Saudi Arabia-Ethiopia (148 ; 5.1%) France-Mali (134 ; 5.21%) Germany-Ghana (105 ; 8.63%) 5.00 5.50 6.00 6.50 7.00 7.50 8.00 8.50 9.00 9.50 10.00

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Remittance flows vs Cost of sending US$200

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Selected corridors  Volume: corridors to Nigeria, Egypt, Tunisia, Algeria, Ghana, le Senegal and Kenya  Cost: corridors from South Africa, Nigeria, Tanzania, Italy, Spain, Germany, France, UK, Netherland, USA, Saudi Arabia, Bahrain and Belgium  Impact: Corridors to Cape Verde, Gambia, Liberia, Lesotho and Comoros, Madagascar, Sao Tomé e Principe and Angola

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Second: Design, implementation and financing  AIR programs: TA programs to Member States, Remittance senders and recipients information and financial education; leveraging programs and channeling yo investments etc..  Implemented in collaboration with key partners – EU and IOM – within different frameworks - La Valletta Action Plan, Nairobi Declaration …

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• Financing of the implementation of

migration-related targets  Traditional and non traditional (Private sector PPP, philanthropy, etc.. Despite associated risks – lose of focus and learning process)  Source of financing would depend on the type of programs (Multilateral, disclosure

• f information on selected corridors etc..)

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• Conclusion

 MDGs implementation success factors: cooperation, coordination and adequate financing;  But also keep in mind the ultimate goal: human development  Need to be consistent with the SDGs’

• verall objectives

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Thank you and looking forward to answering your questions.

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Annexes

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Average cost of sending money from UK to Africa

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Average cost of sending money from Italy to Africa

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Average cost of sending money from France to Africa

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Average cost of sending money from Germany to Africa

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Average cost of sending money from USA to Africa

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Average cost of sending money from South Africa

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Average cost of sending money from Kenya

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Average cost of sending money from Tanzania

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Average cost of sending money from West Africa

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Factors explaining high remittance costs in Africa

1) Restricted competition/exclusivity clauses 2) Underdeveloped financial system 3) Compliance with AML/CFT 4) Low transparency 5) Limited impact of new technology 6) Opaque forex structures