Forced displacement at an all-time high, UN Refugee Agency reports

22 July 2024

The rise in overall forced displacement and what it means for NGOs.

120 million people worldwide were forcibly displaced from their homes as of May 2024, reports the UNHCR, the UN Refugee Agency.

This was the twelfth consecutive annual increase. Those fleeing persecution, conflict, violence and human rights violations worldwide is now equivalent to the population of Japan, the twelfth largest country in the world.

Forced displacement is a key driver of humanitarian need. The 8% year-on-year increase reflects both new and mutating conflicts and the failure to resolve long-standing crises.

8 million people from Syria were forcibly displaced in and outside the country, making it the world’s largest displacement crisis.
Nearly 11 million Sudanese remained displaced by the conflict which broke out in April 2023.
Millions were also displaced last year by an escalation of violence in both the Democratic Republic of the Congo and Myanmar.

“Behind these stark and risking numbers lie countless human tragedies. That suffering must galvanize the international community to act urgently to tackle the root causes of forced displacement,” said Filippo Grandi, UN High Commissioner for Refugees.

NGO objectives: decrease need, increase efficiency, boost resources

The gap between humanitarian needs and funding globally continues to expand. New OECD data for 2023showed that while official development assistance rose to record levels for a fifth consecutive year, support is still falling far short of need.

When resources are scarce and the demand on them ever greater, NGOs typically take a three-pronged approach. They work to decrease the need, increase the efficiency and effectiveness of humanitarian action, and boost available resources.

When it comes to root cause, crises are lasting longer and becoming harder to solve. They increasingly result from complex, overlapping problems, such as war, economic disruption and an absence of political solutions. Working with the right payment partner cannot necessarily help tackle the root cause of need.

However, the right payment partner can improve cross-border money flows to drive significant value to NGOs and end beneficiaries. That’s specifically around making more efficient, effective use of aid and increasing the total amount of aid available.

NGO payment challenges

Whether they’re delivering humanitarian aid, supporting the casualties of conflict and low-income countries, or paying salaries in-country, it’s a struggle for NGOs to get funds to those who so desperately need them. Why?

Inpay asked decision-makers at the biggest NGOs as part of independent research into the sector. What they said didn’t make for easy listening. NGOs complained of delays in opening accounts, denied or closed accounts, frozen funds, blocked donations, missing transfers and ‘black box’ payments.

NGOs are being denied entry to the financial system, de-risked and offboarded. They’re financially excluded at a B2B level, which is concerning as downstream financial inclusion is an enabler of other developmental goals.

It pays to look at alternatives

If NGOs could improve their payment arrangements, they could cut the cost, time and back-office admin associated with international transfers. These savings would translate directly into the work they do.

This could be more children enrolled in vaccination programs, people given access to safe drinking water, sanitation or preventative malaria medicine.

Improving cross-border payment efficiencies may also help set NGOs up for the future. Specifically, expand their scope, reach and donor pool.

Traceability and transparency are a key part of this. Funders have greater peace-of-mind when they’re confident that funds will get to the right place with full traceability. And that this will be cost-effective to maximize the value of their donation.

Money, where it most needs to be

While they are generally the default entry point into financial services, banks may be unwilling or unable to deal with everyday NGO challenges. Fortunately, other options are available.

More and more payment service providers are emerging to rival SWIFT wire transfers for cross-border payments. They have the right reach to link NGO destination and origin countries and as regulated entities may already be accepted by governments. Inpay is one such example.

Inpay covers 70% of the top 17 countries receiving humanitarian aid via local bank transfer. And the remainder via international wire to help NGOs get money where it most needs to be.

When it comes payment speed, cost-effectiveness, traceability and service, alternative providers, like Inpay, can rival traditional ones. This means real-time pay-outs, cost advantages, transparency and domain expertise.

What’s more, Inpay has the risk appetite to service NGOs because robust compliance policies and procedures are embedded as part of our DNA and origin story. It is also a condition of our license issued by the Danish Financial Supervisory Authority.

Contact us at [email protected] to find out how we could help support your important work.