Beyond the Transfer: How Migrant Remittances Are Powering Rural Senegal’s Future
Written By Maxine Ansah
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At an event held in Dakar to mark the International Day of Family Remittances (IDFR), the International Fund for Agricultural Development (IFAD) urged policymakers and partners to do more to maximise the impact of money sent home by Senegalese migrants. With remittances surpassing 1,500 billion CFA francs (over US$2 billion) in 2022, accounting for nearly 10 percent of Senegal’s Gross Domestic Product (GDP), the role of diaspora finance in sustaining rural livelihoods and national development is becoming ever more pronounced.
Globally, over 200 million migrants support more than 800 million family members through remittances, which have totalled over US$5 trillion in the past decade. A significant proportion of this support reaches rural areas, often underserved by formal financial systems and government infrastructure. According to IFAD, remittances have become a lifeline for rural families, especially in countries like Senegal, where financing gaps for development remain vast and growing. Current estimates suggest that developing countries need an additional US$4 trillion annually to meet their development goals.
Speaking at the Dakar event themed “Maximizing the Impact of Remittances: For Inclusive and Sustainable Development”, Matteo Marchisio, IFAD’s Country Director for Senegal, emphasised the untapped potential of remittance flows.
“Remittances are a lifeline for millions of rural families. At IFAD we recognise their value and are committed to making them a powerful driver for resilience, financial inclusion and rural transformation,” he said.
Participants from government agencies, development organisations and the private sector discussed how remittances could do more than just meet short-term needs. Discussions focused on how to encourage savings, increase productive investments, promote the use of digital financial tools and strengthen policy partnerships. One key priority raised was reducing the cost of remittance transfers to less than 3 per cent by 2030, in line with the targets of the Sustainable Development Goals (SDGs).
Giovanni Grandi, Regional Director of the Italian Agency for Development Cooperation (AICS), which supports several initiatives in Senegal, underlined the broader significance of remittances. “Remittances are not just financial flows, they are human and economic bridges, crucial for the rural development of Senegal,” he noted. Grandi reaffirmed AICS’s commitment to linking migration with development outcomes that serve the needs of local communities.
Senegal continues to play an active role in international dialogues on sustainable finance and migration. Ahead of the Fourth International Conference on Financing for Development (FfD4) scheduled for later this month, the country has been a vocal advocate for keeping remittances at the heart of development cooperation agendas. The event in Dakar served as a timely reminder that migration, when supported by inclusive policies and financial frameworks, can be a powerful force for economic resilience and rural transformation.
As IFAD and its partners work to amplify the developmental potential of diaspora contributions, the International Day of Family Remittances remains a vital opportunity to spotlight the people behind the numbers. In Senegal, each money transfer is not just a transaction, but a testament to solidarity, sacrifice and the shared pursuit of a better future.
