RemitAid™ Update

  • RemitAid™ is currently being run jointly by GK Partners and AFFORD (a UK registered Diaspora charity). At a meeting on 11 June 2005, in the run up to the Gleneagles G8 Summit, Gibril Faal made a case to the Chancellor of the Exchequer Gordon Brown, for remittances to be put on the G8 summit agenda. On 13 June 2005, AFFORD formally called for remittances to be included in the G8 agenda. This was followed by a formal call to for the introduction of Remittance Tax Relief (RTR) on 2 July 2005.

  • Between June 2005 and January 2006, further research was undertaken to understand the views of remittance stakeholders - including remitters, money transfer agents and developments experts - about how the development impact of remittances can be improved. Further work was also undertaken on: structural imperfections of remittances; the applicability and operational framework for a tax relief scheme similar to Gift Aid; and how a community tax relief scheme can increase the developmental impact of remittances in the poorest countries of the world.

  • In February 2006, Gibril Faal, the Founder of RemitAid™, presented an expert paper at the First Finance Ministerial Conference of the Least Developed Countries on Migrants' Remittances in Cotonou, Benin. He presented the case for Remittance Tax Relief for International Development and proposed a resolution which was adopted and incorporated in the Ministerial Declaration:

    MINISTERIAL DECLARATION

    "We, Ministers and Heads of delegations of the Least Developed Countries (LDCs), having met on 9 and 10 February 2006 in Cotonou, at the Ministerial Conference of the Least Developed Countries on Migrants' Remittances;

    Urge Governments of host countries to consider introducing tax relief for remittances similar to tax incentives provided for investment funds and charitable donations"

    [Conference organised jointly by UN-OHRLLS and the International Organisation for Migration (IOM)]

  • From February to September 2006, structured consultations were held with a diverse range of stakeholders. This was complemented with research on a variety of themes and issues relating to RTR. Findings and developments were incorporated in the formal submissions made to events and consultations relating to the United Nations' High Level Dialogue on Migration and International Development (UNHLDIMD). In August 2006, Gibril Faal presented at expert paper at the workshop on International Migration, Development and Poverty Reduction in Dakar, Senegal. A further resolution was adopted by participants:

    COMMON FRAMEWORK RESULTING FROM THE WORKSHOP ON INTERNATIONAL MIGRATION, DEVELOPMENT AND POVERTY REDUCTION

    " The participants wish to:

    Recognize the importance of migrants' remittances and their potential impact on development of their countries of origin while being aware that they are private funds, these transfers must not be taken as a replacement of Official Development Assistance (ODA).

    Recognize that remittances, are a form of funding which contribute to development and should attract tax incentives similar to those available for aid and foreign direct investments, and therefore call on host countries to introduce remittance tax relief for development."

    [Workshop organised jointly by the African Capacity Building Foundation (ACBF) and the International Organisation for Migration (IOM) for West and Central African Sates; 8 - 10 August, Dakar, 2006]

  • In August and September 2006, the Executive Director of AFFORD, Mr Chukwu-Emeka Chikezie participated at the UNHLD at the UN General Assembly in New York as part of the UK delegation. Amongst other things, the case for RemitAid™ (Remittance Tax Relief) was a central part of his formal submission.