Remittances Investment and Expertise Flow From Diaspora to Africa

The African Development Bank (AfDB) recently hosted a forum focused on leveraging the skills, wealth, and dynamism of the African diaspora for inclusive growth and sustainable development. The hybrid event, held December 1-2 in Abidjan, brought together academics and leaders of international institutions amidst challenging global economic conditions.

Forum Focus and Key Themes

The Development without Borders forum, co-hosted by the African Union Commission, the International Organisation for Migration, and the African Continental Free Trade Area (AfCFTA) secretariat, explored several key themes. These included securitizing remittances, utilizing diaspora bonds, promoting trade and investment, and enhancing research, innovation, and technology sharing. Discussions also centered on inclusive economic growth, intra-continental trade, and workforce development for future job markets.

Remittances and Investment

African Development Bank President Akinwumi A. Adesina highlighted the significant role of remittances, noting that Africans abroad sent $95.6 billion to the continent in 2021. He emphasized that this surpasses the $35 billion in official development assistance received in the same year. Adesina suggested that African countries should securitize remittances to secure financing for infrastructure investments. He also stated that the diaspora represents a source of direct investment, expertise, and skills.

Diaspora Engagement and Policy Recommendations

Adesina advocated for granting diaspora members the right to vote in their home countries and urged the creation of ministries dedicated to serving diaspora communities. He also addressed the issue of brain drain, noting that Africa loses approximately $2 billion annually in the health sector alone. Deputy African Union Commission Chairperson Monique Nsanzabaganwa recalled previous commitments by African heads of state to engage the diaspora, including establishing a database of diaspora professionals and an Africa diaspora investment fund.

Trade and Perceptions of Africa

Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA) secretariat, pointed to remittances as an opportunity for development given declining foreign direct investment and aid. He highlighted the Pan-African Payment and Settlement System as a tool to facilitate payments across Africa. Ambassador Rama Yade emphasized the diaspora’s role in shaping perceptions of Africa, while Romi Bhatia noted that negative media coverage can deter U.S. businesses from investing. Albert Muchanga stressed the importance of both intra-African trade and engagement in global markets.

Recommendations and Future Actions

The International Organisation for Migration’s Director General Antonio Vitorino urged African countries to proactively engage with their overseas communities, understanding their locations, skills, and willingness to contribute to development. He also suggested exploring philanthropic engagement and diaspora tourism. The forum aimed to produce concrete solutions and a communique to be shared with policymakers across the continent.