Accra – The Government of Ghana, within the framework of the ACP-EU Migration Action, has validated last week the International Organization for Migration (IOM)’s findings and recommendations from its assessment of the international remittances market in Ghana.

The assessment “Review of financial transfers and remittances mechanisms in Ghana, to develop concrete recommendations to harness remittances for development” explores how inward remittances can be leveraged for productive investment and financial inclusion and aims to harness remittances for development. It comes together with a series of recommendations for improvements in the regulatory framework to enhance the operating environment for inward remittance transactions. Key areas of the discussion included the improvement of financial literacy of beneficiaries, financial inclusion, and the lowering of transaction costs.

One of the key findings was that Ghana’s remittances market could be fully digital by 2025 which presents an opportunity for financial inclusion and productive investment.

“The remittances are key to social safety net, and in developing the human capital of the Ghanaian population, which is crucial to achieving the Sustainable Development Goals (SDGs),” noted Ms Sylvia Lopez-Ekra, Chief of Mission of IOM Ghana. “There is a high need to increase financial literacy, and to lower transfer costs as the average of 7.6% is very far from the SDG target of 3%,” she added.

Going forward, an inter-ministerial body on remittances is to be set up to ensure a strategic and timely implementation of the recommendations. It is anticipated that the recommendations of the study will facilitate the introduction of regulated, reliable and efficient financial services and products that would increase remittances receiving households’ access to financial literacy, savings education and affordable insurance programmes.

The Director of the Diaspora Affairs Office at the Office of the President, Mr Akwasi Awua Ababio, welcomed the recommendations and the exchange among stakeholders and acknowledged the commitment of the relevant parties to act on the recommendations.

Remittances are a growing source of foreign funds, raising the standard of living of vulnerable and low-income households across Ghana. Remittances contributed USD 3.8 billion in 2018 equating to 7.4% of GDP in Ghana. It is estimated that if informal channels are formalised, remittances flows could increase by as much as 50%.

The stakeholder meeting brought together representatives from Government of Ghana, Diaspora Affairs Office at the Office of the President, Ministry of Foreign Affairs and Regional Integration, Ghana Investment Promotion Centre (GIPC), and the Bank of Ghana. The study is funded by the European Union through the IOM ACP-EU Migration Action.

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For more information, please contact Eric K. Akomanyi at IOM Ghana, Tel: +233 30 274 2930 (Ext. 2405), Email: eakomanyi@iom.int