back Back

EU and IFAD launch ‘PRIME’ to boost digital remittances in Central Asia

By Gloria Mathias

March 06, 2024

  • Digital Remittances
  • European Union
  • European Union (EU)
Share

European union, Fintech News, Digital Remittances, European Union (EU) , International Fund for Agricultural Development (IFAD) , Kazakhstan, the Kyrgyz Republic, Tajikistan, Uzbekistan,   PRIME AFRICA, PRIME Central Asia , Platform for Remittances, Investment and Migrants’ Entrepreneurship (PRIME) , Fintech News APAC, European Union (EU) and the International Fund for Agricultural Development (IFAD) have launched the Platform for Remittances, Investment and Migrants’ Entrepreneurship (PRIME) Central Asia Initiative in Kazakhstan, the Kyrgyz Republic, Tajikistan, and Uzbekistan, to maximize the socio-economic impact of remittances, the hard-earned money sent home by migrant workers.

Remittances hold an enormous potential to boost local economies, particularly in rural areas. With the PRIME Central Asia Initiative, we support rural households and migrant returnees, contributing to local economic opportunities and sustainable development,” said Marilyn Josefson, Ambassador of the European Union to the Kyrgyz Republic.

“Over 50% of remittances reach rural households, where they are crucial for improving their livelihoods and ability to withstand and absorb any sort of economic or extreme weather shocks,” said Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at IFAD.

“Linking these massive flows to formal financial services can significantly influence the social and economic progress of vulnerable rural communities,” added de Vasconcelos.

Building on the success of its sister initiative PRIME AFRICA, also co-funded by the EU and implemented by IFAD, the new platform in Central Asia will increase access to remittances through digital methods, as well as enhance income-generating activities for migrant returnees, particularly in rural areas.

The Kyrgyz Republic, Tajikistan, and Uzbekistan are all heavily dependent on remittances. In 2023, migrants from these three countries sent more than $24 billion in remittances back home, of which a significant part was sent from Kazakhstan.

To strengthen the remittance ecosystem across the region, PRIME will work to gather data and fill data gaps around remittance flows. This knowledge will fuel innovative business models for digital remittances, as well as using fintech solutions to support the economic integration of remittance families and migrant returnees in rural areas. Through partnerships with the private sector, the initiative will extend financial services to remote areas lacking access.

PRIME Central Asia will also facilitate dialogue and collaboration between policymakers, industry players, and key stakeholders to strengthen national regulatory frameworks, address challenges, and build synergies for impactful interventions.

Previous Article

March 05, 2024

5 Women-led platforms accelerating the FinTech ecosystem in India

Read More
Next Article

March 06, 2024

Mastercard & ALEXBANK team to boost financial services in Egypt

Read More








IBSi Daily News Analysis

Generative AI

April 12, 2024

Digital Remittances

Security experts sound the alarm on Deepfake threats in the age of AI

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

April 12, 2024

Viva.com and BANCOMAT partner to optimise digital payments in Italy

Read More

April 12, 2024

Mimo raises £15.5m to launch its global B2B Payments platform

Read More

April 12, 2024

MAS and Mastercard to boost cybersecurity services in Singapore

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023