Brussels, June 14 – The International Organization for Migration (IOM) today released two new reports on the remittance landscape in Belgium and the impact of remittance costs. high transactions on remittance flows and development outcomes in 21 countries. In Belgium, where a third of the population has an immigrant background, more than 7 billion dollars (6.5 billion euros) in funds were sent in 2023. But sending costs are high.
The findings were presented at IOM’s first-ever National Remittances Summit in Brussels, ahead of the International Day of Family Remittances (June 16).
“Migrants often have to pay transportation costs high transactions when they wish to help their family or community by sending part of their income to their country of origin,” said Marise Habib, Head of Mission of IOM Belgium and Luxembourg.
“IOM research shows that the cost of average transaction between Belgium and 21 countries is currently 4.3%, a rate which is very high considering that the sustainable development objective for transaction costs of migrant remittances is set at less than 3 %. »
“Our data provides insight into the complexities that contribute to rising costs and how to address them,” said Marise Habib.
Reports indicate that a 1% reduction in transaction fees could lead to an increase in remittances of 1.078%, highlighting the potential these measures would represent. Reducing sending costs to countries in humanitarian crisis, for example, would allow migrants and the diaspora to send more funds to communities that need it most.
Studies also show that cash remittances are, on average, 51% more expensive than digital remittances, while in-person money transfer operators are 83% more expensive than online operators. These results highlight the importance of digital and financial inclusion of migrants, and the need for greater transparency on remittance costs.
The IOM Office for Belgium and Luxembourg, with the support of the Belgian government, leads the “O-REMIT” project, which collects information on the costs, volume and impact of remittances from Belgium , but also on the barriers to cheaper remittances, the motivations and behaviors of people who send remittances, and the challenges of collecting data on remittances.
By working jointly with remittance senders and focusing on specific remittance corridors, IOM also helps strengthen informed decision-making on remittance services and methods.
“The objective is to create an environment that allows migrant communities and members of diasporas to fully realize their role as agents of change and development,” said Marise Habib.
IOM’s work in the O-REMIT project is based on data from the National Bank of Belgium, the Belgian Statistical Office (Statbel), KNOMAD/World Bank, and a detailed survey involving more than 1,400 migrants and members of the diaspora in Belgium.
“Although the O-REMIT studies only concern Belgium, the data will provide knowledge that can help us achieve the Sustainable Development Goals, which would have a very positive impact on host communities around the world,” he said. said Ariana Nostrils, co-manager of the O-REMIT project.
Download the reports:
Note to editors:
In 2023, migrants and members of the diaspora sent home nearly US$860 billion in remittances, according to World Bank data. The largest portion of these remittances goes to low- and middle-income countries, where these personal transfers constitute the largest source of capital inflow, surpassing foreign direct investment and overseas development assistance. stranger.
The O-REMIT project is implemented by IOM Belgium and Luxembourg in partnership with Zidicircle, Entrepreneurs for Entrepreneurs (OVO), and the National Bank of Belgium. The project contributes to the achievement of Sustainable Development Goal 10c, which aims to reduce the transaction costs of migrant remittances to less than 3%. It also supports Goals 19 and 20 of the Global Compact for Migration, which respectively aim to create conditions for migrants and diasporas to fully contribute to sustainable development in all countries and to promote faster, more secure remittances. and less costly in order to promote the financial inclusion of migrants.
