By Khalifa Hemed
Published December 7, 2024
Two new reports shedding light on the transformative role of money sent home by migrant workers have been released.
‘Migrant Remittances and Diaspora Finance for Climate Resilience’ and ‘Remittances for Climate Change Adaptation in Mali’, the two reports published by IFAD in collaboration with the UN Convention to Combat Desertification (UNCCD), show that remittances are a vital financial flow that enables communities to cope with shocks like droughts, heatwaves, and floods. Remittances also give poor farming families the financial security to adopt longer-term strategies such as natural soil fertilization, pest control, and investment in climate-smart agricultural techniques. The IFAD study shows that households receiving remittances are investing more in climate-resilient activities and products than families not receiving them.
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In 2023, the African diaspora sent US$90 billion in remittances, matching Official Development Assistance (ODA) and double the amount of Foreign Direct Investment, according to World Bank data.
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“These funds are not just about sending money back home,” says Pedro de Vasconcelos, Manager in charge of Financial Facility for Remittances at International Fund for Agricultural Development (IFAD). “Migrant families are using remittances to improve food security, diversify incomes, and adopt sustainable farming practices like drought-resistant crops and agroforestry.”
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“Data collection and impact assessments are essential in scaling up successful approaches, while ensuring that remittances and diaspora investments fully contribute to closing the adaptation finance gap in sub-Saharan Africa. With innovative solutions and coordinated efforts, both remittances and diaspora investments can help safeguard the future of millions across the region. They hold immense potential to drive adaptation efforts in vulnerable communities across Sub-Saharan Africa,” de Vasconcelos notes.