Addis Ababa, 14 July 2015 (WIC) – Intergovernmental Authority on Development (IGAD) says remittance is a tool for financing development and meeting food security.
Executive Secretary of IGAD, Ambassador (Eng.) Mahboub Maalim in his briefings to journalists regarding IGAD high level ministerial roundtable discussion on remittance, said that remittance enhances finance development and household food security in IGAD member countries with a view to formulating appropriate polices.
The linkage between remittances, financing development and household food security in IGAD member countries with a view of formulating appropriate policies that enhance remittance contribution to local and regional economies, he added.
It was noted that IGAD embarked very early on high level meetings at the UN head quarters and world powers on the threats posed by the closer of bank accounts of money transfer operating in Somalia and the IGAD region.
The meeting held by high level ministerial discussions assesses the impact of challenges that money transfer operators, remittance companies, especially after legislation, it increasingly difficult for people to transfer to receiving countries.
Some of the presentations highlighted by Ambassador Mahboub indicated that some countries like Somalia are using remittance in regulating the financial sector and specifically in combating the financing of terrorist activities.
It also noted that Somali stake holders Advisory Councils and IGAD both are addressing international concerns and setting the foundation for robust regulations and reliable systems in the financial industry across the region aiming the creation of safe, transparent and legal settings.
People think as remittance is unique to Somalia; rather it is a key of resource flows for all developing countries which far exceed official development assistance.
Prevention of illegal money flow and the increase of transparency throughout all steps of the remittances is one of the crucial focusing areas, he added.
IGAD welcomes Mr. Halane Hussein Executive Secretary’s Special Representative on Remittance, Walta learnt.