Development assistance is expected to increase while the cost of remitting money from the diaspora to Africa will decline significantly following a global agreement reached at the just ended High Level Meeting on Development Co-operation.

During the meeting held in Nairobi from November 28 to December 1, developed countries reaffirmed their commitment to fulfilling their Official Development Assistance (ODA) obligations.

These  include a commitment by many developed countries to set aside of 0.7 per cent of their gross national income for ODA  and 0.15 to 0.20 per cent of their Gross National Income (GNI) as ODA to least developed countries.

The 0.7 per cent ODA/GNI target was first agreed upon in the 1970 UN General Assembly resolution.

However, the agreement has been repeatedly re-endorsed at the highest level at international aid and development conferences.

In 2005, 15 countries that were members of the European Union agreed to reach the target by 2015. However, as at March, only seven countries — Sweden, Netherlands, Norway, Denmark, Finland, Luxembourg and United Kingdom — had met the target. Finland achieved it once in 1991.

Countries also agreed to reduce the cost of diaspora remittances to less than three per cent of the amount transferred and to ensure that no remittance corridor levies charges higher than five per cent by 2030. The decision will contribute to efforts to combat hunger and poverty in the world.

In Africa, the average cost of remitting money home from abroad is estimated at 8.8 per cent of the value of the amount being transferred, with Kenya’s rate estimated at 6.6  per cent and South Africa and Nigeria at 20 per cent.

According to the World Bank, the total money transfers by African migrants to their region or country of origin increased by 3.4 per cent to $35.2 billion in 2015, with the amount representing 6 per cent of the total remittances worldwide, estimated at $581.6 billion.

The 2030 Agenda for sustainable development requires all countries and stakeholders to deal with the issues of eradicating poverty and hunger and achieving the 17 Sustainable Development Goals. The countries resolved to develop capacities for national tax authorities, enhance accountability mechanisms for businesses and financial institutions and eliminate gender bias in tax systems.

Illicit financial flows which often leave developing countries via the commercial financial system have devastating effects on developing countries. According to OECD fighting international tax evasion is important because it is a major source of illicit financial flows from developing countries. Globally an estimated $ 1 trillion is paid each year in bribes and hence reducing bribery reduces the opportunities for illicit gains, and   illicit financial flows.

The stakeholders, during the four-day meeting that ended on December 1, agreed to forge a united front in the fight against  poverty, inequality and diseases by  promoting  public-private partnerships for decent work for women, migrants, people living with disabilities and vulnerable groups working in the informal sector.