Managing agricultural risk through remittances: the case of Senegal

This is a joint report by the Financing Facility for Remittances and the Platform for Agricultural Risk Management.

This feasibility study explains the role of remittances in agricultural risk management, the challenges facing remittance flows, and the opportunities to enhance the productive use of remittances for agricultural risk management investments.

Drawing on qualitative and quantitative methodologies, the findings suggest that more than 30 per cent of households receive national and international remittances to cope with everyday difficulties. These transfers, most of which are received informally or simply in cash over the counter, essentially allow households to maintain their level of consumption and take up investment in response to agricultural shocks. Combined with financial services and farm and business support, these remittance flows could further bolster rural households’ ARM strategies and resilience.