International Day of Family Remittances

International Day of Family Remittances History

The International Day of Family Remittances (IDFR) is an annual observance that aims to recognize the significant financial contributions made by migrant workers to their families and home countries. This day highlights the importance of remittance flows as a vital source of income for millions, particularly those in economically challenged regions. It honours the hard work and sacrifice of migrants as well as acknowledges their efforts in improving the well-being of their families back home and promoting sustainable development.

Established by the International Fund for Agricultural Development (IFAD) in 2015, IDFR was endorsed by over 170 countries to raise awareness about the positive impact of family remittances in reducing poverty and achieving other development goals. For South Africans, these remittances play a crucial role, as they financially support many families, particularly in rural areas, where people often rely solely on the funds transferred to them by relatives working abroad. These remittances contribute to economic stability and help alleviate poverty among vulnerable populations, making it an essential lifeline for many South African families.

While there may not be specific customs or activities associated with the observance of IDFR in South Africa, relevant stakeholders, such as government agencies and financial institutions, often use this day to discuss policies and strategies to improve remittance channels and reduce transfer costs. Moreover, they strive to raise awareness about the importance of remittance services and their impact on South African families. The International Day of Family Remittances is observed annually on June 16.

Facts about Family Remittances

• In countries such as Tonga, Kyrgyz Republic, and Haiti, remittances can make up more than a quarter of the GDP each year.
• Global remittances inflows are expected to grow by 2.0% in 2023.
• Family remittances are closely linked to migration patterns. The financial support provided through remittances can incentivize migration, as individuals seek better economic opportunities abroad to support their families back home.
• South Africa primarily sends remittances to neighboring countries like Zimbabwe, Mozambique, Lesotho, and Eswatini. In 2020, remittance outflows from South Africa were estimated at $1.3 billion.
• The cost of sending remittances from South Africa is relatively high compared to global averages. According to the World Bank, the average cost of sending $200 from South Africa is around 9% of the total amount, higher than the global average of 6.5%. The target set by the United Nations' Sustainable Development Goals is to reduce remittance costs to 3%.

In the News and Trending in South Africa for International Day of Family Remittances

Top things to do in South Africa for this observance

• Watch the IFAD's 2020 International Day of Family Remittances video if you missed it.
• Watch a documentary to learn more about family remittances in South Africa. Here are our suggestions:
  1. Miners Shot Down (2014)- This documentary focuses on the Marikana miners' strike in 2012 in South Africa, where many workers were killed by police. It highlights the economic struggles of the working class and indirectly touches upon the importance of remittances in their families' lives.
  2. Namaacha - A Film on Remittances and Development in Rural Mozambique (2010) This documentary focuses on the role of remittances in a rural community in Mozambique, where many families depend on money sent from South Africa.
• Read a book to learn more about family remittances in South Africa. Here are our top picks:
  1. Remittances and the Brain Drain: Skilled migrants do remit less by David McKenzie and Hillel Rapoport.
  2. The impact of remittances on households' livelihood strategies in South Africa: A case study of Zimbabweans in Soshanguve by Elmond Bandauko.
  3. Money from relatives abroad: issues and strategies for estimating international remittance flows in South Africa by Ronald Skeldon.