The G20 recognizes the importance of remittances and financial inclusion for sustainable development

Written by Alessandra Casano, Financing Facility for Remittances

On 16 November, the G20 leaders gathered in Antalya (Turkey) adopted the Leaders Communiqué, in which paragraph 21 is entirely dedicated to remittances and financial inclusion.

"21. The private sector has a strong role to play in development and poverty eradication. Through our G20 Call on Inclusive Business we stress the need of all stakeholders to work together in order to promote opportunities for low income people and communities to participate in markets as buyers, suppliers and consumers. Our G20 National Remittance Plans developed this year include concrete actions towards our commitment to reduce the global average cost of transferring remittances to five percent with a view to align with the SDGs and Addis Ababa Action Agenda. We are promoting financial inclusion by helping to open up access to payments, savings, credit and other services. We welcome the continued work on financial inclusion within the Global Partnership for Financial Inclusion (GPFI)."

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During 2015, considering the work of IFAD in the field of remittances, migration and development, the GPFI commissioned a formal study to IFAD on "The Use of Remittances and Financial Inclusion", in collaboration with the World Bank, subsequently submitted to the G20 leaders gathered in Antalya. This is the first IFAD publication officially endorsed by the G20 leaders.

In addition to the report on "The Use of Remittances and Financial Inclusion", IFAD and its Financing Facility for Remittances (FFR) is mentioned in the G20 National Remittance Plans for the European Union, which also refers to the African Postal Financial Services Initiative.

"Page 3, para. 1c.  The EU is funding through its external cooperation instruments, flagship initiatives in the field of remittances such as the Financing Facility for Remittances (FFR) and the setting up of the African Institute for Remittances. The Institute set up in Nairobi, will be engaged in data collection, technical research and information sharing. The ongoing EU-funded action "African Postal Financial Services Initiative" aims at enhancing competition in the African remittances market through enabling African post offices to offer financial services."

This mention will further facilitate IFAD's work in the field of remittances, migration and development and highlight relevance of its work at global level.

About the GPFI: the Global Partnership for Financial Inclusion (GPFI), officially launched on 10 December 2010 in Seoul, is an inclusive platform for all G20 countries, interested non-G20 countries and relevant stakeholders to carry forward work on financial inclusion, including implementation of the G20 Financial Inclusion Action Plan, endorsed at the G20 Summit in Seoul. Spearheading the implementation were the three key Implementing Partners: the Alliance for Financial Inclusion (AFI),  the Consultative Group to Assist the Poor (CGAP), and the International Finance Corporation (IFC). In 2012, the World Bank joined the GPFI as Implementing Partner. The Organisation for Economic Co-operation and Development (OECD) joined the GPFI as implementing partner in 2013, whereas in 2014, the Better Than Cash Alliance and IFAD also joined as implementing partners. Her Majesty Queen Máxima of the Netherlands is the Honorary Patron of the GPFI.