MICROCAPITAL BRIEF: ECCAS, UNCDF Pursue Better Digital Remittances To, Within Central Africa

The 11-member Economic Community of Central African States (ECCAS) and the UN Capital Development Fund (UNCDF) recently entered a two-year agreement through which they aim to expand “affordable and convenient access to digital remittances” for migrants transferring money to family members in their home countries. Priti Sinha, the Executive Secretary of UNCDF said, “Our goal at UNCDF is to support creation of coherent and interoperable systems, both technological systems as well as the policy systems that govern the technology.”

In particular, ECCAS and UNCDF will seek to reduce regulatory barriers to such services. In addition, they will develop market research to identify “how remittances, if shifted from cash to digital channels, could be the gateway to other financial services supporting the resilience and financial health of migrant households.” To support this work, UNCDF will arrange peer-learning meetings among regulators, financial service providers, and other stakeholders.

The initiative is co-funded by the Swedish International Development Agency as a compliment to its other efforts “to improve migration policies and governance, promote migrants’ rights, and facilitate labor mobility on the continent.”

Founded in 1983 and based in Gabon, the goal of ECCAS is to promote economic cooperation among its member countries, which are Angola, Burundi, Cameroon, Central African Republic, Chad, Democratic Republic of Congo, Equatorial Guinea, Gabon, Republic of the Congo, Rwanda, and São Tomé and Príncipe.

Established in 1996 and headquartered in the US city of New York, UNCDF endeavors to create opportunities for poor people and their businesses by increasing access to microfinance and other forms of investment capital. The organization operates in 40 countries in Africa and Asia with a particular commitment to countries emerging from crises. During 2019, UNCDF had a budget of USD 63 million and supported initiatives providing financial services to 3 million unbanked and underbanked clients.

By Aakansha Shenoy, Research Associate

Sources and Additional Resources

UNCDF press release
https://www.uncdf.org/article/6691/eccas-and-uncdf-announce-agreement-to-strengthen-financial-services-for-african-migrants-and-families

ECCAS homepage
https://ceeac-eccas.org

UNCDF homepage
https://www.uncdf.org

Swedish International Development Agency homepage
https://www.sida.se

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