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The eighth summit took place in Nairobi, Kenya, from 14 to 16 August 2023. Co-organized by the , the United Nations Office of the Special Advisor on Africa (OSAA) , and the World Bank Group, the summit saw participation from around 500 participants. Titled "Digital Remittances towards financial inclusion and Cost-reduction", the summit focused on migrant and diaspora contributions to Africa’s development, national and global policies around remittances, and practical mechanisms, models, as well as partnerships within this framework.
Key representatives from the public, private sectors, and civil society gathered to discuss the importance of migrants’ financial contributions as key socio-economic factors. This year’s theme explored opportunities and challenges in the post-pandemic landscape. It provided an opportunity to discuss the importance of digital technology, diaspora investment innovations in Africa, and the benefits of financial inclusion when linked to family remittances."
The Under-Secretary-General and Special Adviser on Africa to the United Nations Secretary-General, Ms. Cristina Duarte addressed Africa's financial paradox; "we must put an end to the staggering losses of $70 billion in public spending inefficiencies, $88 billion in illicit financial flows, and $46 billion wasted on inefficient tax incentives." In 2022, African countries received nearly $100 billion in remittances, almost 6% of the continent’s GDP. In her address, she highlighted that although remittances are typically classified as external sources of finance, one-fifth (1/5) of remittances are generated within the African continent itself. "Africa should stop considering remittances as an external source of financing for development beyond our control, rather, a domestic source that can be tapped into and mobilized through effective domestic resource mobilization."
Therefore, it is imperative to redefine and re-label remittances as a domestic source of finance for Africa. She said it is crucial that Africa stops treating remittances as external flows similar to foreign direct investment (FDI) or official development assistance (ODA). Ms. Duarte also mentioned the high cost of transferring money, with Africa remaining the highest globally at approximately 8.5 percent, far exceeding the global average of 6.3 percent and significantly deviating from the 3 percent SDG target 10. c. To this end, she said that if the commitment to reduce the transaction costs of migrant remittances to less than 3% and eliminate remittance corridors with costs higher than 5% is met, Africa could see the volume of remittance flows received from its migrants double by the year 2030. Although Africa is off-track with achieving SDG target 10. c, efforts by multiple stakeholders including the private sector, to create an enabling environment for facilitating remittances and diaspora investment have been recognized.
During the summit, the importance of mobile money potential was highlighted. Mobile money is a pathway to achieving SDG 10.c -Reducing transaction costs of remittances. According to the , it is estimated that the use of mobile technology could reduce the cost of remittances by half. In fact, mobile money transfers are the cheapest means averaging less than 5 percent, as remittance-sending instruments are also critical factors impacting the cost. It was emphasized that partnerships are crucial in effectively mobilizing and utilizing resources, as well as leveraging remittances to their full potential. The private sector can enhance financial accessibility by, reducing transaction costs and ensuring secure remittance transfers. Additionally, Governments were called to play their role by promoting, facilitating scaling up, and institutionalizing successful initiatives in remittances and diaspora investment.
The Under-Secretary-General closed by stating that this gathering, with its anticipated concrete outcomes, will guide policymakers and key stakeholders in seizing the potential of remittances and diaspora finance to drive Africa's sustainable development.
During the three-day discussions, it became clear that to fully maximize the developmental potential of remittances and diaspora investment, unique and adapted approaches will be necessary. In this respect, the summit called on the necessity for increased financial inclusion through enhanced digital access to remittances and bundled appealing financial products; facilitating enabling environments and harmonized regulatory frameworks for faster, safer, and cheaper remittances and reliable investment models that respond to the aspirations of diaspora investors; promoting broader market interoperable instant payment systems and streamline licensing requirements for market operators; and enhancing the production and collection of quality disaggregated data on remittances and diaspora investments.