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

AIR IR Second IDM 2016 workshop on Assessing progress in the implementation of the migration-related SDGs 11 th -12 th August 2016, Geneva, Switzerland A Session 4, Panel 2: I Financing the implementation of migration-related targets R Amadou CISSE Interim Executive Director, AIR amadou.cisse@au-air.org

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

AIR IR • Key message (..end)  … and there is need for better coordination and financing mecanisms A of programmes…  … which should be people -oriented. I R

AIR IR • Target 10.c: By 2030, reduce to less than 3 per A cent the transaction costs of migrant remittances and eliminate remittance I corridors with costs higher than 5 per R cent

AIR IR Why target 10.c? High volume of Remittances flows to Africa in 2015 … US$ 65.7 A billion I R 11.3% of total world remittances.

AIR IR … and high remittance transfer costs. +5.88% 8.88% A Higher Average cost SDGs target to Africa I R

AIR IR • Target 10.c: meaning  Recognizance of potential impact A  Support for ongoing initiatives - establishment of the African Institute I for Remittances (AIR) - to reduce remittances transfer cost. R

AIR IR • Target 10.c related programmes  Objectives: reduction of remittances transfer costs to and within Africa. A  How? First, identify corridors of I focus: a few corridors selected on the basis of three criteria: volume, cost R and impact

AIR IR Average cost of sending US$200 per corridor 25.00 The most expensive • Nigeria-Benin (22.96%) Nigeria-Mali (23.13%) corridors are all intra- South Africa-Nigeria (20.81%) 20.00 Africa corridors South Africa-Mozambique (17.98%) A Nigeria-Togo (16%) 15.00 South Africa-Lesotho (15.84%) Cameroon-Nigeria (14.06%) Tanzania-Kenya (13.07%) I United States-South Africa (10.44%) Canada-Kenya (10.16%) 10.00 Saudi Arabia-Egypt, Arab Rep. (6.85%) R United Kingdom-Nigeria (5.28%) 5.00 United States-Nigeria (4.39%) Kuwait-Egypt, Arab Rep. (2.78%) Saudi Arabia-Sudan (1.6%) - - 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00

AIR IR Remittance flows vs Cost of sending US$200 10.00 Italy-Nigeria (945 ; 9.82%) 9.50 Spain-Nigeria (695 ; 9.12%) Israel-Morocco (338 ; 9.02%) 9.00 Italy-Tunisia (394 ; 8.9%) Germany-Ghana (105 ; 8.63%) Germany-Morocco (273 ; 8.63%) 8.50 United Kingdom-Uganda (287 ; 8.5%) France-Algeria (1638 ; 8.34%) A Germany-Nigeria (637 ; 8.35%) 8.00 Ghana-Nigeria (806 ; 7.86%) Italy-Egypt, Arab Rep. (556 ; 7.75%) United Kingdom-South Africa (231 ; 7.65%) 7.50 United States-Kenya (469 ; 7.54%) Netherlands-Morocco (386 ; 7.23%) Saudi Arabia-Egypt, Arab Rep. (7587 ; 6.85%) I France-Tunisia (1380 ; 6.88%) 7.00 France-Madagascar (373 ; 6.78%) United Kingdom-Kenya (519 ; 6.62%) Bahrain-Egypt, Arab Rep. (359 ; 6.51%) 6.50 Italy-Morocco (878 ; 6.38%) United States-Egypt, Arab Rep. (1012 ; … Qatar-Egypt, Arab Rep. (1056 ; 5.93%) 6.00 R United States-Ghana (536 ; 5.89%) United Kingdom-Ghana (257 ; Spain-Morocco (1580 ; 5.56%) 5.79%) Italy-Senegal (296 ; 5.68%) United States-Ethiopia (197 ; 5.64%) 5.50 France-Morocco (1976 ; 5.29%) United Kingdom-Nigeria (3719 ; 5.28%) France-Mali (134 ; 5.21%) Belgium-Morocco (437 ; 5.2%) Saudi Arabia-Ethiopia (148 ; 5.1%) United States-Liberia (343 ; 5.25%) 5.00 - 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00

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

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

AIR IR Financing of the implementation of • migration-related targets  Traditional and non traditional (Private sector PPP, philanthropy, etc.. Despite A associated risks – lose of focus and learning process) I  Source of financing would depend on the type of programs (Multilateral, disclosure R of information on selected corridors etc..)

AIR IR Conclusion •  MDGs implementation success factors: cooperation, coordination and adequate financing; A  But also keep in mind the ultimate goal: I human development  Need to be consistent with the SDGs’ R overall objectives

Thank you and looking forward to answering your questions. A I R

Annexes A I R

Average cost of sending money from UK to Africa A I R

Average cost of sending money from Italy to Africa A I R

Average cost of sending money from France to Africa A I R

Average cost of sending money from Germany to Africa A I R

Average cost of sending money from USA to Africa A I R

Average cost of sending money from South Africa A I R

Average cost of sending money from Kenya A I R

Average cost of sending money from Tanzania A I R

Average cost of sending money from West Africa A I R

Factors explaining high remittance costs in Africa 1) Restricted competition/exclusivity clauses 2) Underdeveloped financial system A 3) Compliance with AML/CFT 4) Low transparency I 5) Limited impact of new technology 6) Opaque forex structures R