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Mobilizing Diaspora Direct Investment

Mobilizing Diaspora Direct Investment. A new source of capital Individual Impact Investing in the 21 st Century London – United Kingdom. What are the facts?. What we know about Diaspora capital flows: US$450B in remittance flows from West to Emerging Markets (10%-15% per year) - WB

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Mobilizing Diaspora Direct Investment

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  1. Mobilizing Diaspora Direct Investment A new source of capital Individual Impact Investing in the 21st Century London – United Kingdom

  2. What are the facts? • What we know about Diaspora capital flows: • US$450B in remittance flows from West to Emerging Markets (10%-15% per year) - WB • US$40B in flows into Africa alone (P2P) • Conventional Wisdom: Subsistence Consumption

  3. What do Remittances say? • Remittances outstrip any other form of flows • Size • Resilience • Do Remittance flows = Diaspora Investment Flows? • What do we know about remitters and their motivations…

  4. GWU – Western Union Research • GWU-Western Union Afro Migrant Study: • About 1,000 members of US-based African Diaspora were surveyed – sponsored by WU • Research Objectives: • Profile? • Investment interest and activity? • Obstacles to investments? • Diaspora investment advantages? • Investment motivation?

  5. GWU-WU Findings (1) • Profile? • Average stay in the US: 22.18 years • 72.2% plan to return “Back Home” • Average age of respondent: 46 years old • More than 50% have annual incomes in excess of US$100,000 • Average remittance in past 3 yrs: US$12,974 (std dev: US$22,873.)

  6. GWU-WU Findings (2) • Demographics:

  7. GWU-WU Findings (3) • Risk Tolerance

  8. Contact with “Back Home” GWU-WU Findings (4)

  9. GWU-WU Findings (5) • Investment Interest (%)

  10. GWU-WU Findings (6) • Investment Activities (%)

  11. GWU-WU Findings (7) • Diaspora investment motivation summarized: • Financial • Emotional • Social-status • Political

  12. Implications? • How to translate into a palatable proposition? • Need to: • Facilitate Access to Impactful Opportunities • Provide Reasonable Prospects for Returns • Provide Process Transparency • Address Voice Mechanism • Must do this in a single proposition…

  13. Solution…

  14. Homestrings Update • Over $10 million invested via Homestrings.com since 2/2012 • Over 1000 members in database • Infrastructure bonds - key drivers • Kenya, Nigeria, Ghana, Mozambique… • Public financing debt: • Cote d’Ivoire (2032), Congo, Uganda, Egypt,… • Financing Pipeline: Healthcare, Housing, Agribusiness and Mining…

  15. Next Steps? • Diaspora and Other interested Investors • Registering at the average rate of 100 a month • Growing book of Opportunities • Private Equity Funds • Diaspora Bonds (gvts, corporations, n/profits) • Housing (investment, lending, buying) • Deals (co-investment and stand-alone)

  16. Conclusion • Homestrings – a repository of investment opportunities for Diaspora and other investors • Homestrings – a platform for vetted project promoters • Homestrings – first impact investment “shopping mall” for the Diaspora.

  17. Contacts • Eric V. Guichard – Founder/CEO eric@homestrings.com • Derek Smail – Senior Advisor/Member of Advisory Board DSmail@homestrings.com • Address: www.homestrings.com

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