Dakar, 16 June 2025. At an event marking the International Day of Family Remittances (IDFR), the International Fund for Agricultural Development (IFAD) highlighted the importance of maximizing the impact of money sent by Senegalese working abroad for the well-being of rural families.
Financing gaps for development are large and growing – with estimates that US$4 trillion of additional investment is needed annually for developing countries. Remittances are already playing a crucial role in reducing this financing gap, providing a reliable and direct source of funding at the household level. In Senegal, remittances exceeded 1500 billion XOF (over US$2 billion) in 2022, accounting for around 10 per cent of the country’s Gross Domestic Product (GDP). These crucial financial flows provide a safety net for millions of rural families, supporting immediate needs as well as income-generating activities and long-term investments in health, education and housing.
Speakers at the “Maximizing the Impact of Remittances: For Inclusive and Sustainable Development” event emphasized how to further strengthen the already crucial contribution of the Senegalese diaspora to poverty reduction, local economic growth and a more sustainable future. Participants discussed ways to encourage remittance recipients to increase their savings and productive investment, and adopt digital tools, as well as the goal of strengthening partnerships to further reduce transfer costs to less than 3 per cent by 2030.