This archive report was first published on 13 June 2020.
June 13, 2020
As the COVID-19 pandemic continues to ravage the world, rural families are bearing the brunt of its economic impact. Remittances, a lifeline for many families, are declining globally, pushing them closer to poverty.
According to Pedro de Vasconcelos, Senior Technical Specialist at the International Fund for Agricultural Development (IFAD), the global economic situation could lead to even deeper poverty levels for rural families.
With the majority of migrant workers hailing from low- and middle-income countries, the decline in remittances is having a devastating impact. It is estimated that the world's 200 million migrant workers send money regularly to 800 million family members to help them access basic necessities like food, health, and education.
Speaking at a virtual event organized by the Thomson Reuters Foundation, Mr. Vasconcelos emphasized the need for governments to work together to minimize the impact of the decline in remittances on food security.
"I am calling on all governments to act fast and minimize the impact of the drop in remittances on food security of rural families," he said.
The overall flow of remittances globally is $500 billion, with remittances in 2019 reaching a record $554 billion, overtaking foreign direct investment flows to low- and middle-income countries.
However, the COVID-19 pandemic is expected to lead to a 20 percent decline in migrant remittance flow to these countries.
According to the Central Bank of Kenya, remittances dropped by Sh2.2 billion in April to Sh22.3 billion compared to Sh24.5 billion received in March.
Mr. Vasconcelos also highlighted the need for governments to come up with innovative business solutions to support families that depend on remittances and to promote fee reductions by developing products that enable migrant workers to transfer non-financial products through remittance services.
