engage magazine issue 006/\'08 - Page 40

40 EXPORT SUPPORT Facts Sending l Some 35 per cent of British ethnic minority households send money. l Black Africans are the most likely to send money, while Asian households send the biggest amounts. l Of those who send money, the average amount is £870 per year. l The average income of senders is £22,000 and 70 per cent are aged 25-44. l Almost half are sending money to parents, 15 per cent to spouses and children, and 25 percent to other close relatives. Others send money to friends or other contacts. l Nearly a third of the money is used to buy food, 21 per cent for medical bills and 17 per cent to help pay for schooling. l Globally, the World Bank estimates that more than US $220 billion worth of remittances were sent to developing countries in 2006. Money Overseas l India is the world’s biggest recipient of remittances, estimated at £10 billion a year. Remittances through formal channels to Pakistan were an estimated £3 billion in 2007. l For many poor countries, remittances are a bigger source of money than investment by overseas companies. For example, Ghana receives 10-15 per cent of its national income from remittances, and around 3 per cent from foreign investment. l Remittances also play an increasingly important role in the aftermath of natural disasters. Formal remittances to Pakistan increased by some £90 million following the devastating earthquake that hit Kashmir in October 2005. Ethnic minority communities in the UK send an estimated £2.3 billion a year to loved ones in more than 50 developing countries, including over £300 million to India and £200 million to Pakistan. The next biggest recipients are Nigeria, Jamaica and Ghana. Source: Department for International Development (DFID), January 2008 engage | uk ISSUE SIX 2008