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

By Gloria Mathias

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.