The African Union Commission is in the final phase of establishing the "African Institute for Remittances", announced an AU official on Wednesday.

In view of the opportunities and challenges posed by migration, the commission is working with member states and regional economic communities to enhance the free movement of persons and promote rights of residence within the framework of regional integration, said Mustapha S. Kaloko, AU Commissioner for Social Affairs.

The official hopes the move will help reducing the costs of remittances in the EU-Africa corridors and the intra-Africa corridors.

It also aims at substantially increasing the volume of transfers through the formal remittance channels, and broadening financial inclusion in view of economic and social development.

"The primary benefit to the AU will be to play a leadership role in a project and network that would create relevant policy research on impact of remittances on development processes in AU member states," said the commissioner in his briefing note.

He also stated that there is Africa-Arab partnership in the area of migration.

"It is important to note that migration and mobility is about people moving in search of a better life. It is therefore, essential to uphold the fundamental and human rights of migrant smuggling and trafficking in human beings," according to the briefing note.

The commission reaffirms its commitment to continuing cooperation with partners to maximize the development impact of migration and mobility for Africa, said the commissioner.