News

Policy Brief: Enhancing the Development Potential of South-South Migration

Exploring the transformational role of remittances and migrant investments - and the policy interventions needed to enhance their impacts.

A new UNU-CPR policy brief explores the development impacts of migration between Ethiopia and South Africa. Drawing on research undertaken among migrants from Hadiya in the Southern Nations, Nationalities and People’s region of Ethiopia, the brief looks at the transformational role of remittances and migrant investments, the challenges migrants face en route to and within South Africa, and in Hadiya upon their return, and considers policy interventions to enhance the development potential of migration.

Although migration to South Africa has generated transformative change, with significant transfers of both capital and skills and a new positive sense of self, there are downsides: increasing inequality between migrant and non-migrant households and urban land speculation that has displaced farmers and pushed land prices beyond the means of most households.

The research on which the policy brief is based was undertaken through the MIDEQ Hub, an initiative that aims to unpack the complex and multi-dimensional relationships between migration and inequality in the context of the Global South, which accounts for over a third of all international migrants.

To mitigate the negative impacts of migration and harness its development potential in the specific context of Hadiya, the policy brief advances several recommendations for government, migrants, and regional organizations. These include:

  • Securing bilateral labour agreements with South Africa to ensure that the rights of migrants are protected.
  • Placing a moratorium on informal land markets to address rising inequality and protect farmers from migrant land speculators.
  • Improving the investment climate to incentivize and channel migrant investments into productive sectors.
  • Tailoring investment opportunities to migrant needs and comparative advantages – and encouraging migrants to develop a sense of social responsibility.
  • Encouraging joint investment ventures to increase the visibility of migrants and strengthen their voices vis-à-vis government stakeholders.
  • Providing business skills training for returnee migrants to ensure investments generate wider development impacts.

Read ‘Enhancing the Development Potential of South-South Migration’ here.

Related content

Media Coverage

How Credit Rating Agencies are Reshaping Development Finance

In Development Matters Daniel Cash explains how shifting credit rating methodologies are raising the lending power of multilateral development banks.

22 Nov 2025

Project

Resource Nexus Finance (RNF): Linking Resource Nexus and Sustainable Finance

The project works on the interface between Resource Nexus and sustainable finance.

07 Nov 2025