African Finance Experts say Remittance Finance can Help Foster Social Inclusion

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• Publié par: dahabshiil
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• Langue: English

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African Finance Experts say Remittance

Finance can Help Foster Social Inclusion

PR Newswire

LONDON, June 22, 2012

LONDON

,

June 22, 2012

/PRNewswire/ --

Leading figures from

Africa's

financial services industry, including those from

the African Development Bank (AfDB) believe remittances can play a crucial

role in fostering social development and increasing financial stability in

developing countries.

AfDB hosted a conference in Arusha,

Tanzania

on 29 May to discuss how

efficient financial markets and access to finance can aid economic

development. Speakers at the conference - a side event held during the 2012

Annual Meetings of the Boards of Governors of the African Development Bank

Group - included Agnes Soucat, Director, African Development Bank and

Abdirashid Duale, CEO of Dahabshiil.

Speaking at the event, Mr Duale praised the significant progress being made to

improve access to finance and aid economic growth in developing countries. He

stressed the comparative stability of large areas of the Somali territories -

citing growth in businesses and industries as well as improved education and

employment prospects. Discussing the role of microfinance in combating

poverty, he acknowledged its early promise, asserting the growth of a formal

financial infrastructure will enable sustainable financial products to be

developed to better meet the needs of poor communities.

Abdirashid Duale said: "Financial inclusion is increasingly on the international

agenda for policymakers.

"Significant steps are being taken and the new regulatory frameworks currently

evolving will ensure even greater efficiency in resource mobilisation for both

inward and domestic investment. Microfinance initiatives and institutions are

already enabling some of

Africa's

poorest to plan for the future and to be more

resilient to economic, political and climatic shocks."

Agnes Soucat said: "Access to finance is a key component of our new Human

Capital Development Strategy. Increasing opportunities for the poor and

marginalized - and particularly for the African youth - is crucial in order ensure

social inclusion as well as job creating growth. Companies such as Dahabshiil

provide a vital service by facilitating the transfer of remittances to often

excluded communities."

The economic crisis did not have as heavy an impact on African countries as it

did on their global counterparts. Many of

Africa's

48 economies are recovering

at a faster rate than the rest of the world, with 4.5 per cent growth expected

this year, and 4.8 per cent growth projected for 2013 according to a report

drawn up by AfDB, the Organisation for Economic Cooperation and

Development (OECD), the United Nations' Economic Commission for

Africa

(ECA) and the UN development agency (UNDP). In addition,

Africa

is

increasingly attracting investment opportunities as a result of improved

management of public finances.

Africa's

recent surge can be traced to a range of factors including remittances

sent back to

Africa

from migrant workers. Funds remitted to

Africa

by its global

diaspora play an important role in national economies, providing a

supplementary source of income which boosts private sector growth.

Dahabshiil sends approximately

$1bn

back to

Africa

every year, and is the

largest of the international payments firms established in

Africa

.

Globally, money sent home by migrants constitutes the second largest financial

inflow to developing countries - a vital source of income that outweighs donor

aid. Remittance income is particularly important for communities in more

remote regions of

Africa

, and helps to bolster the funding of humanitarian

organisations operating in those locations.

Mr Duale added: "

Africa's

diaspora sends around

$40bn

back home annually,

and remittances are an essential lifeline for many communities across the

continent. There is no doubt that this inflow has been an important factor in

Africa's

economic development."

Handling international money transfers of under

$200

on average, Dahabshiil is

in effect a provider of micro-remittances. Remittances are acknowledged to be

an indispensable source of income for developing countries around the world,

fuelling long term growth through sustained investment. Initiatives to improve

access to finance for poor communities are increasingly at the forefront of

international policy, and Dahabshiil is now looking to partner with leading

international NGOs - to expand its offer to include other microfinance products.