Of the International Day of Family Remittances

I am currently working for a remittance company whose headquarters is in South Africa. I am Zimbabwean by nationality and today is a really interesting day. It is a public holiday in South Africa commemorating the youth who died in protest of Apartheid education in 1976. South Africa’s Youth day coincides with the International Day of the African Child and, as I have since learnt from work memos over the last few years, the International Day of Family Remittances. Indeed, it is a special day! Had you been here with me I would be telling you that it is the latter which I will dwell on. Read on…

International Day of Family Remittances is observed on June 16 every year to mark the contributions made by over 200 million migrants to improve the lives of their family members back home. The day has been adopted by the United Nations General Assembly and is globally recognized. Half of these remittances go to rural areas where they have the power to create a huge impact. This day seeks to spread more awareness about the impact these contributions have on households, communities, and nations.

Remittances, or cross-border person-to-person payments of relatively small value, are vital to the developing world. Individual remittances may be of relatively small value, but overall these flows are three times larger than global official development assistance. Many households in the developing world depend entirely on these funds. These remittances run their household, send children to school and pay for healthcare.

International Day of Family Remittances is globally recognized and is a key initiative in the Global Compact for Safe, Orderly, and Regular Migration (Objective 20), which urges a cut in transfer costs and greater financial inclusion through remittances. Remittance flows have increased five-fold over the past two decades, serving in a counter-cyclical capacity during economic downturns in recipient countries.

International Day of Family Remittances is important as there are around 800 million family members on the receiving end of it. The day highlights the determination and resilience of the many migrant workers in the face of financial insecurities and natural as well as climate-related disasters. Remittances form the financial aspect of the social contract that binds migrants to their families back home. Overall, these inflows total in the billions, but the value of an average remittance is around $200 to $300 a month. The United Nations has repeatedly called on governments, the private sector, development organizations, and civil society to promote digital and financial solutions for these flows that foster greater social and economic inclusion.