Home World News Developed Economies IOM Reports High Remittance Costs Impede Development Opportunities from Belgium

IOM Reports High Remittance Costs Impede Development Opportunities from Belgium

0
Kriticos who is originally from Zambia and Tanzania and Jason from Rwanda are two of the many diaspora members who have embraced a new life in Belgium as well as their roots. Photo: IOM/Moayad Zaghdani
Kriticos who is originally from Zambia and Tanzania and Jason from Rwanda are two of the many diaspora members who have embraced a new life in Belgium as well as their roots. Photo: IOM/Moayad Zaghdani

The International Organization for Migration (IOM) has unveiled alarming findings on Belgium’s remittance landscape, revealing substantial barriers posed by exorbitant transaction costs that hinder development outcomes across 21 recipient countries.

Despite over USD 7 billion (EUR 6.5 billion) in remittances sent from Belgium in 2023, high fees continue to challenge migrants’ ability to support their families back home.

Presented at IOM’s inaugural National Remittance Summit in Brussels ahead of the International Day of Family Remittances, these revelations underscore critical issues faced by migrant communities. Marise Habib, Chief of Mission at IOM Belgium and Luxembourg, lamented, “Migrants encounter significant hurdles due to high transaction costs when sending vital funds to their countries of origin.”

Highlighting the disparity with global benchmarks, Habib noted, “Our research indicates that the average transaction cost from Belgium stands at 4.3%, well above the Sustainable Development Goal target of less than 3%.” She emphasized the urgent need for cost reduction measures to facilitate increased remittances crucial for development amidst humanitarian crises.

The reports further illuminate that cash remittances are on average 51% more expensive than digital transfers, with in-person operators costing 83% more than online platforms. These disparities underscore the importance of digital financial inclusion for migrants and transparency in remittance pricing.

IOM’s “O-REMIT” project, supported by the Government of Belgium, seeks to address these challenges through comprehensive data analysis from the National Bank of Belgium and collaboration with stakeholders like Zidicircle and Entrepreneurs for Entrepreneurs (OVO). Ariana Naser, co-manager of O-REMIT, stressed, “Our aim is to empower migrant and diaspora communities to realize their full potential as contributors to global development.”

While focused on Belgium, the insights gleaned from O-REMIT resonate globally, offering pathways to achieving Sustainable Development Goals and fostering financial inclusion. As the global remittance market nears USD 860 billion annually, these initiatives are pivotal in maximizing the impact of personal transfers on global economic stability and development.

For more detailed insights, download the reports:

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

error: Content is protected !!
WP Radio
WP Radio
OFFLINE LIVE
Exit mobile version