Remittance Grant Facility
The Remittance Grant Facility will be set up with the Ministry of Finance of Ghana as a challenge fund. It will provide grants to private sector actors and support the design and pilot testing of innovative products and services for remittances.
Private sector and entrepreneurship
- Government of Ghana
|Background||The role that remittances (transfer of money by a worker to an individual in his or her home country) play in recipient countries’ economies is important. Recorded remittances are more than three times the size of official development assistance and nearly two-thirds of foreign direct investment flows to developing countries. It is acknowledged that remittances contribute to poverty reduction. Remittances can have, if used for productive purposes, significant multiplier effects on economic and social development. Ghana has been a substantial beneficiary of global remittance flows.|
|Objectives||The overall objective of the Remittance Grant Facility (RGF) is to address the operational constraints associated with formal remittance flow channels into Ghana, and to use remittances to encourage innovative financial services and products. The RGF will provide grants to private sector actors and support the design and pilot testing of products and services that should also reach poor and rural housholds. This will lead to extended remittance services, a more productive use of remittances, further product development and new market actors, more use of formal channels and ultimately, costs of sending remittances are expected to decrease.|
|Medium-term outcomes||Remittances are better accessible and more affordable to poor and rural Ghanaians.remittances are increasingly used for productive activities, for instance setting up a small business instead of mere consumption purposes.piloted services or products are being replicated by other market actors.|
Expected results: Innovative service channels are piloted which are affordable and accessible to poor and rural Ghanaians.innovative remittance-backed financial products (such as deposit and savings accounts, insurance and forms of investment) that are affordable and accessible are developed and promoted, especially for poor and rural population.market studies and awareness raising will help to learn more about the remittance market and share lessons with relevant actors.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 2'470'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 2'600'000|
|Project phases||Phase 1 01.08.2016 - 31.07.2020 (Current phase)|