A New Partnership to Empower Moroccan Families Through Digital Remittances

Photo by Diego van Sommeren

A new partnership between the United Nations International Fund for Agricultural Development (IFAD) and international money transfer operator, Moneytrans, aims to enhance financial resilience and economic empowerment for Moroccan families who rely on remittances from Europe.

The initiative is part of the Platform for Remittances, Investments and Migrants’ Entrepreneurship in Africa (PRIME Africa), funded by the European Union and implemented by IFAD’s Financing Facility for Remittances. It seeks to build confidence in digital payment solutions among remittance recipients, who have traditionally opted for cash due to unfamiliarity with financial services and digital technologies, missing opportunities that formal accounts provide.

“IFAD’s support will promote the digital transition and financial inclusion of migrant workers who are reluctant to use non-cash methods and unaware of the advantages of accessible financial services,” said Pedro de Vasconcelos, IFAD’s Programme Manager.

The project targets rural populations, particularly women and low-income households, to broaden access to savings and credit. Around 18,000 remittance senders in Belgium, France, Germany, Italy, Spain and the Netherlands are expected to switch to digital transfers through formal bank accounts. Approximately 31,500 recipients throughout Morocco will benefit, with 30% in rural areas.

“We want to help reduce costs so migrants and families benefit as much as possible from funds sent to Morocco, by promoting innovative digital financial services for greater inclusion,” said Patricia Llombart Cussac, EU Ambassador.

Of Moneytrans transfers, 70% will go to urban areas and 30% to over 200 rural localities. Their extensive network makes them an ideal partner for expanding financial services and products.

Remittances are crucial income for many families, comprising 7.9% of Morocco’s GDP in 2021 at $10.4 billion. Costs to send to Morocco are much lower than the African average, with digital transfers to mobile wallets from developed countries just 2.64% in 2021.

This new digital approach through a formalized partnership aims to empower vulnerable populations through financial access, resilience and inclusion.

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