What roles do remittances and money transfers play in consumption smoothing and asset accumulation in rural areas?
Income from national or international remittances is important for most developing economies, and it is disproportionately important for many rural areas where it may be the principal income source. Remittance monies can make significant contributions to consumption smoothing in poor households. Efficient mechanisms for money transfers are in large demand by the rural poor. MFIs engaged in remittances to and from rural areas include the National Microfinance Bank of Tanzania, Uganda Microfinance Union for domestic transfers, Equity Building Society in Kenya and Centenary Rural Development Bank in Uganda for domestic transfers using Western Union as subagent, Teba Bank for mineworkers in South Africa making transfers domestically and to Botswana, Lesotho, Mozambique, and Swaziland, Fonkoze in Haiti, Banco Solidario in Ecuador, PRODEM in Bolivia, and the Microfinance Bank in Kosovo.
