Unveiling Remittances: Beyond Financial Transactions
The world is a global village powered by technology. One term that has gained prominence for its role in nurturing international relationships is “remittances” But what exactly are remittances, and how do they transcend borders to maintain emotional ties?
Remittance is more than a monetary transfer; it’s an emotional lifeline connecting families living apart. It goes beyond mere financial transactions. Remittances bridge the distances and bind families separated by geographical boundaries. It is funds sent to aid family members, provide for children’s education, cover medical expenses, rent payments, and occasionally for investments like property or building a home.
Overall, more than 19.5 million Africans are living in different world regions as of 2020, and one of the challenges faced by Africans living outside their home country is the need to connect with their loved ones back home. According to the World Bank, remittance inflows grew by 6.1% in Sub-Saharan Africa in 2022 and it is estimated to grow by 1.4% in 2023. In other words, more money is likely to be sent as remittances this year compared to the previous years.
Why do we send money?
Remittance isn’t just about sending money, it’s about emotions, care, and connections. Whether it’s a parent helping a child study abroad or a sibling supporting their family back home, every transaction tells a story of commitment and solidarity. When physical distance separates families, these financial gestures become lifelines, proving that connection knows no boundaries.
When we spoke to Missy, a young Nigerian who relocated to Canada a year ago, she shared that she had found it challenging to adapt to the distance from home, particularly due to cultural shocks and new experiences. Being very clear about the impact that her new reality — (new job, better pay, better pay in a stronger currency) could have on her family, it was a no-brainer choice for her to make sure that she sends money home, frequently. For Missy, this flow of funds goes beyond the transactional, it is her own way of contributing to the family whilst also maintaining the close emotional bonds she shares with her family.
Social and Economic Impact of Remittances
The reach of remittances doesn’t stop at hearts; it touches economies too.
These funds help fight poverty, improve education, and boost healthcare in developing nations.
Remittances also increase investments by alleviating credit constraints in developing countries, thus, positively affecting economic growth. As more nations all over Africa continue to deal with the economic effects of inflation, reduced FDIs and insecurity, remittances offer not just money, but hope. When disasters strike or emergencies hit, these funds become the backbone of support.
From Sender to Recipient: The Remittance Journey
The journey of a remittance involves a sender’s heartfelt intention to support loved ones, and a recipient’s gratitude for the assistance received. This journey is more than a financial exchange — it’s a shared experience that reinforces the emotional connection between the sender and the recipient.
Building and Nurturing Relationships
When physical distance threatens the closeness of families, remittances act as tangible tokens of love. It is a symbol of dedication and responsibility, reminding recipients that they are cherished and supported, no matter the geographical divide. For instance, a parent sending funds to a child studying overseas isn’t just performing a transaction; they’re sending a piece of their heart, nurturing the family unity despite the miles of separation between them.
Influencing social dynamics
Beyond economics, remittances also influence social dynamics. They preserve cultural ties by supporting traditional practices and celebrations, even when oceans separate families. Recently,we spoke to Ife who is a customer of Sendsprint.
Ife lives in Wales, far from her dear mom who actually has the same birthday as her. Wanting to make their special day really good, Ife picked matching shoes for both of them. By making sure her mom got her pair before the birthday, Ife set up a sweet celebration to show how much she cared about her mom. In this case, remittances serve as a reminder of heritage, ensuring that cultural identity remains intact despite geographical distances.
Crisis management and resilience
In times of crisis, remittances often take on a critical role in providing relief and stability. Families facing financial challenges, natural disasters, or unexpected emergencies find solace in the timely receipt of remittances. These funds can mean the difference between survival and hardship. For instance, during the pandemic, remittance flows remained resilient and strong all over the world. This was further reinforced by Michal Rutkowski, Global Director of the Social Protection and Jobs Global Practice at the World Bank. He mentioned that even though the COVID-19 pandemic affected families around the world, remittances provided a critical lifeline for the poor and vulnerable
While remittances are a powerful force for good, challenges like high transaction costs and access barriers persist. According to Dilip Ratha, lead author of World Bank’s Migration and Development Brief, Sub-Saharan Africa remains the most expensive place to send money to, where the average cost is 9.4%. However, Sendsprint is revolutionizing the remittance landscape. Sendsprint offers more affordable and efficient ways to send money and gifts to Africa. We do this by ensuring that we charge a flat and fixed fee on the transaction, allowing our users to plan ahead and avoiding surprises at checkout, and ensuring that our rates continue to remain fair — the two most important factors that we know our senders care most about — predictable fees and fair exchange rates.
Choosing a Trusted Remittance Partner
Choosing the right service is crucial, and Sendsprint offers an easy platform, great rates, and a commitment to transparency which is perfect for nurturing relationships while sending support.
Finally, it is important to understand that remittances remind us of what truly matters — human connections. As our world grows smaller, remittances remain a symbol of relationships built on care, compassion, and shared moments.