Morocco Strengthens Role of Remittances in Rural Transformation and Financial Inclusion

The International Day of Family Remittances (IDFR) was marked with renewed purpose and promise in Oujda as the International Fund for Agricultural Development (IFAD), Bank Al-Maghrib (BAM), and the European Union Delegation to Morocco hosted a landmark event themed “Maximizing the Impact of Remittances for Inclusive and Sustainable Development.”

The event brought together national and international stakeholders from the government, financial institutions, development agencies, and civil society to examine how the growing remittance flows from Moroccans Residing Abroad (MREs) can be better harnessed to transform Morocco’s rural economy, expand financial inclusion, and foster long-term development.

Remittances: The Backbone of Rural Stability

Remittance flows to Morocco surged to an unprecedented US$12.9 billion in 2024, up from US$11.5 billion in 2023, accounting for 8% of the national GDP, placing Morocco among the top remittance-receiving countries globally. For rural Morocco, where approximately one-third of the population resides, these funds are more than monetary transfers—they are anchors of stability, opportunity, and growth.

Stefania Gnoato, IFAD’s Country Director for Morocco, emphasized this transformative role. “Remittances are a lifeline for millions of rural families. Morocco stands out by embedding these flows into its development strategies, where families aren’t passive recipients but active drivers of change.” She added that strategic use of these funds for education, housing, healthcare, and microenterprise development contributes directly to long-term resilience.

The DigitRemit Morocco Project: Scaling Inclusive Finance

A centerpiece of the celebration was the DigitRemit Morocco project, a joint initiative by IFAD and the European Union, designed to amplify the socio-economic benefits of remittances in underbanked rural areas. The project aims to promote productive savings, investment literacy, and digital payment technologies while helping to bring down the cost of remittance transfers to below 3% by 2030, in line with Sustainable Development Goal 10.c.

In her address, Fatima Zahra Echihabi, Head of BAM’s Financial Inclusion and Sustainable Development Department, highlighted the project's goals: “Our commitment is to expand access to innovative financial services, particularly for women and youth in rural communities, and to ensure that remittance recipients can use these funds safely, affordably, and productively.”

EU’s Support for Migration-Development Synergies

The European Union is playing a crucial role in advancing the migration-development nexus in Morocco. Speaking at the forum, Jean-Christophe Filori, Head of Cooperation at the EU Delegation to Morocco, remarked, “Remittances are not merely cash inflows—they are human and economic bridges. Through this initiative, we support families in rural Morocco to build resilient futures while also strengthening ties across the Mediterranean.”

He noted that remittances have not only bolstered household resilience but also helped to stabilize local economies, especially during crises like the COVID-19 pandemic and regional climate shocks. The EU sees Morocco as a model for how to align migration with inclusive growth and financial empowerment.

Driving Rural Development Through Innovation

The Oujda event also featured roundtable discussions and interactive sessions focusing on:

• Expanding mobile-based financial services to bridge the urban-rural gap in banking.

• Developing diaspora investment platforms that allow MREs to co-invest in agriculture, tourism, and green technologies.

• Strengthening partnerships with microfinance institutions and agri-cooperatives to channel remittances into smallholder farming and local businesses.

• Reducing financial vulnerability through remittance-linked savings products and insurance coverage.

IFAD representatives also showcased successful case studies from other countries, offering Morocco policy inspiration for institutionalizing remittance investment frameworks.

Remittances in the Global and Regional Context

Globally, over 200 million migrant workers send money to over 800 million family members, with US$5 trillion in remittances recorded over the last decade—figures that far surpass official development assistance. According to IFAD, over one-third of these funds flow directly into rural economies, making remittances one of the most reliable and impactful sources of development finance.

Morocco’s strategic importance is further enhanced by its growing role in regional financial innovation and its leadership in integrating diaspora contributions into national development strategies.

The Road Ahead: Implementation and Inclusion

Participants underscored that while Morocco is making remarkable progress, sustained success hinges on policy coherence, grassroots engagement, and capacity building. There were strong calls for:

• Expanding financial literacy campaigns tailored to rural women and youth.

• Ensuring transparency and consumer protection in digital remittance services.

• Creating feedback mechanisms so that rural families have a voice in shaping remittance-related policies.

IFAD reaffirmed its commitment to working with BAM, the EU, and other partners to support scalable solutions that enable rural Morocco to transform remittances into long-term economic gains and social mobility.