The Financing Facility for Remittances (FFR) of IFAD is pleased to announce the 2nd round of National Calls for Proposals (Kenya, Uganda) 2021: supporting remittances in times of crisis in Africa.
Through its over US$60 million fund, the FFR works to reduce poverty and promote development by leveraging both international and domestic remittances and migrant capital in rural areas of developing countries.
These National Calls for Proposals 2021 will finance grants from €150,000 up to €500,000.
In this context, the FFR intervenes in Africa through the Platform for Remittances, Investments and Migrants’ Entrepreneurship in Africa (PRIME Africa), a programme co-financed by the European Union, with the aim to reduce inequality and enhance financial inclusion in Africa through the reduction of remittance costs and the maximization of their impact.
The Call for Proposals 2021 follows the previous ones published in December 2020, and focuses on Kenya and Uganda, to finance initiatives that will support at least one of the following objectives:
- Reduce international remittance transaction costs – Contribute to reducing international remittance transfer costs and increase access to and use of transparent and gender responsive low-cost services.
- Accelerate digitization of international remittances – Accelerate the use of digital products and the digital payments ecosystem to support international remittances.
- Leverage remittances to deepen financial inclusion – Use international remittances as a conduit for increasing financial inclusion and the resilience of remittance senders and recipients.
- Expand formal channels for international remittances – Promote greater access and use of formal international remittance transfers.
IFAD’s FFR welcomes strategic partnerships linking for-profit entities with non-profit organizations, formal financial intermediaries, money transfer operators, microfinance institutions, financial cooperatives, postal networks, philanthropic organizations, investment funds, local and national governments, among others.
In Africa, one out of five people send or receive international remittances, without considering domestic flows. Most remittances received in Africa cover daily needs, with a significant amount (25 per cent) available for savings or investment. Bringing these funds into the formal financial system can dramatically increase their impact. When remittances are deposited into financial institutions, they can benefit both the individual and the community.
With better financial education and a broader range of financial services to choose from, remittance recipients are empowered to make financial choices that can advance them towards financial resilience. The ability to expand financial services, however, depends on institutional capacity, willingness to offer services to low-income people, and on regulatory frameworks that enables them to do so.
What IFAD is doing?
PRIME Africa aims to address these development opportunities through innovations, partnerships and scalable products that promote cheap and fast remittance transfers. By helping maximize the impact of remittances for millions of families, PRIME Africa will contribute to foster local economic opportunities in the migrant workers’ countries of origin.
Note: The specific guidelines for the two countries, as well as the templates for the submission of the proposals will be made available shortly.