U.S. GOVERNMENT HOSTS FORUM TO IMPROVE REMITTANCE FLOWS TO                                    GHANA AND TO WEST AFRICA

The United States Government, through the Agency for International Development (USAID), has sponsored a forum on remittances and trade in West Africa. The event titled "The Accra Regional Forum on Remittances and Trade in West Africa" included a technology fair showcasing international money transfer. It was co-hosted by the Government of Ghana and the Economic Community of West African States (ECOWAS).

Over 250 individuals representing the financial services sector, government, the international donor community, academia and trade associations participated in the two-day conference held in Accra on March 30 and 31, 2006.

Honorable Papa Owusu Ankomah, Ghana's Interior minister, representing the President of Ghana; Her Excellency Pamela Bridgewater, the U.S. Ambassador to Ghana; and His Excellency Arie C.A. van der Wiel, the Ambassador of the Netherlands to Ghana , all addressed the opening session.

"This conference presents a unique opportunity for West Africa," said Ambassador Bridgewater, adding, "It will allow the participants to reflect on the findings from new research conducted by USAID and DFID and to harness their energies while launching sustained efforts to achieve change."

Ambassador van der Wiel noted that private remittances to Ghana are much more than foreign aid or the export value of the cocoa and gold. He underscored the role of local university and research institutions in refining what is generally sketchy data on remittances. In so doing, policy decision related to this rapidly escalating source of outside funds can then be made from factual, not speculative data.

USAID and the United Kingdom Department for International Development studies on remittance flows to Ghana and the region reveal that Ghanaians abroad have strong ties with their families in Ghana. This connection resulted in remittances back to Ghana totaling more than US$1.4 billion in 2005, primarily for food, school fees, health expenses and real estate. Within West Africa, remittances crossing the borders of Ghana, Mali, Nigeria and Senegal are approximately US$2 billion per year, and a much higher amount in trade settlements.

The conference identified opportunities for increasing remittances and trade into and within West Africa as well as channeling them into business investment. These include banking regulation reforms to lower remittance costs and increase its flow; new financial products to channel remittances into productive investments; a clearinghouse to help money transfer become more efficient; and encouraging hometown associations of Ghanaians abroad to seek opportunities to advance Ghana 's development.