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Migration in Burundi: History, Current Trends and Future - MGSoG ...

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6.3 Remittances 39<br />

Given the relatively small size of the <strong>Burundi</strong>an diaspora <strong>in</strong> Europe <strong>and</strong> North America,<br />

the volume of remittances is likely to be smaller compared to remittances sent by other<br />

African groups. Accord<strong>in</strong>g to Ratha <strong>and</strong> Xu (2008), remittances to <strong>Burundi</strong> accounted<br />

for 0.1% of GDP <strong>in</strong> 2006, but they caution that the true size of the remittance flow is<br />

believed to be much larger when <strong>in</strong>clud<strong>in</strong>g unrecorded flows through formal <strong>and</strong><br />

<strong>in</strong>formal channels. Furthermore, total flows may not always equal the sum of the<br />

components, as they may be pieced together from a variety of alternative sources. 40<br />

Information on the implications of remittances for recipients <strong>and</strong> development<br />

processes at large is likewise lack<strong>in</strong>g. De Bryun <strong>and</strong> Wets make similar observations <strong>and</strong><br />

note that “more <strong>in</strong>formation is needed about the importance of remittances for house-<br />

holds <strong>in</strong> <strong>Burundi</strong>: Who receives remittances? Are the recipients ma<strong>in</strong>ly based <strong>in</strong> urban<br />

centres? Which proportion of revenues is derived from remittances?” De Bryun <strong>and</strong><br />

Wets further argue that “without this k<strong>in</strong>d of <strong>in</strong>formation, it is impossible to determ<strong>in</strong>e<br />

the development potential of remittances” (De Bryun <strong>and</strong> Wets, 2006, p50).<br />

A few <strong>in</strong>stitutional estimates may give a better <strong>in</strong>dication of remittance levels by<br />

captur<strong>in</strong>g overall remittance estimates from Europe. The Central Bank of <strong>Burundi</strong> keeps<br />

records of <strong>in</strong>ternational f<strong>in</strong>ancial transfers received by residents <strong>in</strong> <strong>Burundi</strong> via the<br />

bank<strong>in</strong>g system. Accord<strong>in</strong>g to their 2003 data, about US$2.9 million was remitted to<br />

<strong>Burundi</strong>. In 2004 total remittances were estimated at about US$4.1 million (IOM, 2008,<br />

p36) while <strong>in</strong> 2005, IOM estimates suggest that some US$16 million was remitted to<br />

<strong>Burundi</strong> (IOM, 2009). Based on these estimates the M<strong>in</strong>istry of fF<strong>in</strong>ance’s calculations<br />

suggests that official remittance flows <strong>in</strong>to the country represented about 0.48 % of the<br />

GNP <strong>in</strong> 2003 <strong>and</strong> 0.6 % of the GNP <strong>in</strong> 2004. In this case <strong>Burundi</strong> still needs to mobilize<br />

its diaspora <strong>in</strong> order to encourage remittances if it is to achieve remittance levels similar<br />

to those reported for other Africa countries.<br />

The records are general <strong>and</strong> do not give details of the countries from which<br />

remittances orig<strong>in</strong>ate, however. 41 For this reason there are no official figures <strong>in</strong>dicat<strong>in</strong>g<br />

which specific countries the money came from even though these figures can still be<br />

accessed through data of money transfer companies <strong>and</strong> the central bank. The situation<br />

applies to the estimates of remittance flows from the Netherl<strong>and</strong>s to <strong>Burundi</strong> because<br />

39 See data compiled by the World Bank. Data reported <strong>in</strong> 2005 refer to 2004.<br />

40 See Dilip Ratha <strong>and</strong> Zhimei Xu, <strong>Migration</strong> <strong>and</strong> Remittances Fact book, <strong>Migration</strong> <strong>and</strong> Remittances<br />

Team, Development Prospects Group, World Bank. Available at<br />

<br />

41 Although such <strong>in</strong>formation are always <strong>in</strong>dicated <strong>in</strong> the transfer details<br />

45

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