ADA in collaboration with its local partners is developing an innovative microfinance project designed for the Senegalese migrants working in Italy. The project aims to increasing migrants remittances by encouraging them to save a bigger part of their money for financial products such as savings for project of a micro-entreprise, or savings for housing credit, etc. This product is also an important local financing ressource to increase the viability of the MFIs .
Documents to download
- Giving value to migrant's savings: the challenge of ADA-PAMECAS project (PDF, 355 Ko), ADA, 2009
- Theme file "La microfinance au service des migrants" (article in English p.27, PDF, 5 Mo), 14th Midi de la microfinance, ADA, 2010
Why should ADA support savings and remittances project?
Migrants workers in Europe generally speaking send a large proportion of the money they earn back to their home country. A large part of the flows sent by migrants living in countries in the North transits through unregulated channels – the money goes from hand to hand, or through a transport company, or else goes through import-export companies. The use of such informal and not very secure services entails not only risks, but in addition, prevents such financial flows from being used productively. ADA-PAMECAS project aims to increasing the productivity of the migrant savings. They can save money through a microfinance institution in order to create their own micro-entreprise or get a housing credit.
The World Bank put world flows of formal transfers at USD420 billion in 2009, with annual growth of more than 15% in 2007 and 2008. These flows amount to more than two-and-a-half times more than Official Development Assistance (ODA) to the countries on the OECD’s DAC (Development Assistance Committee) list. In 2009, they dropped by 5.3%, with large regional disparities, but the World Bank predicts that growth will get back into the black in 2010 (1.2% growth).*
More information on the World Bank website.
*(Source: Ratha D., Mohapatra S., Silwal A., November 2009, Migration and Development Brief 11)
