Diaspora remittances, investments and expertise vital to Africa’s future growth, African Development Bank Forum participants say | African Development Bank

Hundreds of academics and leaders from international institutions from around the world gathered for an African Development Bank Forum on ways to harness the skills, wealth and dynamism of Africa’s 160 million diaspora for its growth and development.

The hybrid event took place against the difficult geopolitical backdrop of major global economic imbalances slowing direct investment in the continent and accelerating shifts in the labor market. As a result, experts believe that the $95.6 billion Africans abroad have transferred to the continent and their skills and expertise have become more important to Africa’s prospects.

Participants agreed that more needs to be done to tap into and engage the diaspora community and leverage their strengths for the benefit of Africa.

These were the main conclusions from the plenary session on Thursday of the two-day meeting entitled: Development without borders: leveraging the African diaspora for inclusive growth and sustainable development in Africa. The African Development Bank organized it in collaboration with the African Union Commission, the International Organization for Migration and the Secretariat of the African Continental Free Trade Area.

The forum focused on various themes such as securitizing remittances, diaspora bonds, promoting trade and investment, promoting research, innovation and technology sharing. Securitized remittances would provide African governments with robust investment collateral and a source of funding through bond issuance. In addition to remittances, Africans abroad represent a source of much-needed direct investment, expertise and skills that can be transferred to businesses and workers in their home countries.

The discussion also included making economic growth more inclusive, deepening intracontinental trade and preparing African workers for the jobs of the future.

In his opening remarks, Dr. Akinwumi A. Adesina, President of the African Development Bank, that regardless of their success abroad, Africans remain tied to the continent of their birth as a source of identity and pride. Therefore, the development of Africa must be a priority for all Africans in the diaspora.

“The African diaspora has become Africa’s biggest financier! And it’s not a fault; they are 100% grants or endowments, a new form of concessional finance that is key to the livelihoods of millions of Africans,” he said.

In contrast to the high level of remittances in 2021, Official Development Assistance to Africa in 2021 was $35 billion.

Adesina added: “Because the flow of remittances to Africa is high, rising and steady, it offers tremendous opportunities to serve as collateral to secure funding for African economies. African countries should securitize remittances to promote investment, especially for infrastructure on the continent.”

Dr. Adesina pushed for Africans living in the diaspora to be given the right to vote in elections in their respective countries. He called for ministries to be set up to serve the people in the diaspora.

“I beg and encourage African governments to create the conditions for those living and working abroad to make meaningful contributions to national development or, better yet, not to leave at all,” he said. Africa loses about $2 billion annually due to brain drain in the health sector alone.

Dr. Monique Nsanzabaganwa, Deputy Chairperson of the African Union Commission, recalled that African heads of state committed themselves as far back as 2012 to engaging the diaspora by, among other things, establishing a database of diaspora professionals, an African Remittance Institute and an African Diaspora Investment Fund. to make.

Wamkele Mene, Secretary General of the Secretariat of the African Continental Free Trade Area (AfCFTA), said remittances are an opportunity for Africa’s development against a background of declining foreign direct investment and foreign aid.

He cited the Pan-African Payment and Settlement System, a partnership between the African Export and Import Bank (Afreximbank) and the AFCFTA Secretariat, which works with Africa’s central banks to establish a financial market infrastructure for commercial banks , payment service providers, card schemes and other intermediaries to handle payment and settlement services across Africa. He said operationalizing the AFCFTA, which took effect in January 2021, would pave the way for diaspora communities to invest in Africa.

Tea Director-General of the International Organization for Migration, Antonio Vitorino, urged African countries to proactively approach their overseas communities. “Governments need to get to know their diaspora; that starts with knowing where the diaspora are, what their skills and abilities are, and how willing they are to develop at home.”

In addition to remittances, Vitorino pointed to philanthropic involvement and diasporic tourism as potential areas of mutual interest for African governments and the diaspora.

Diaspora communities play a vital role in changing the narrative and perceptions of Africa: “Africa is the oldest continent, the youngest continent and soon the largest continent,” said Ambassador Rama Yade of the Africa and Europe Centers of the US-based Atlantic Council. .

Romi Bhatia, a Senior Advisor for Diaspora Partnerships at USAID, said there were still too many headlines in the Western media about disease, death and despair in Africa, putting American companies at risk – both real and perceived – across the continent. much emphasized.

“As a result, U.S. companies are missing out on opportunities to build mutually beneficial trade and investment partnerships across the Atlantic,” he said.

African Union Commissioner for Trade and Industry, Albert Muchanga, agreed. “If others see you investing in Africa and you generate high returns, their risk perception is likely to drop,” he said.

Muchanga also stressed that while the African Continental Free Trade Zone is critical to deepening pan-African trade, African countries should also be involved in global trade.

The event is expected to deliver concrete solutions, recommendations and communication that will be shared with policy makers across the continent.