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Dr Banjoko 19th May 2005

Sources of Investments in Africa, Diaspora -European Investor Perspective African Government Policies: Integration of the Diaspora Africa Youth Foundation. Dr Banjoko 19th May 2005.

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Dr Banjoko 19th May 2005

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  1. Sources of Investments in Africa, Diaspora -European Investor PerspectiveAfrican Government Policies: Integration of the DiasporaAfrica Youth Foundation Dr Banjoko 19th May 2005

  2. The Africans in the Diaspora merit increasing attention they are a source of investment funding, expertise and a confidence building measure of great importance. Financial flows from the Diaspora on average contribute 5-10% of some African countries Gross Domestic Product and in a few cases over 20%. The African community in the Diaspora has a major role to play in the new task of transformation, reconstruction and regeneration. Their experience, values, knowledge and creativity are very much required to join with home-based efforts to ensure the overall improvement in the African condition. Rebuilding Africa is a collective challenge. H.E President Olusegun Obasanjo – Current Chairperson African Union

  3. Diverse partnership Network Enable Challenging perception Information Mobilise Links Creating the infrastructure The role of AfricaRecruit- facilitating and enabling Diaspora investment. The African Union, New Partnership for Africa’s Development (NEPAD) and individual African governments are all exploring ways of harnessing the African Diaspora. Rather than looking at the negative aspects of capital flight the emphasis is how to capture the benefits

  4. African Diaspora- One of Africa’s greatest offshore asset Remittances Business Tourism Real Estate Stocks Social Nostalgic products African countries are becoming more heavily reliant on the stable foreign direct investment and the increasing remittances from its indigenous population abroad as a source of finance. In 2002 formal remittances to Africa accounted for 15% ($12bn) of the total remittances to the developing countries ($80bn). Massive contributions in areas such as telecommunications (telephone calls); flights; food products, films and many other services

  5. Obstacles to Diaspora Investments

  6. The actual figure on remittance is under-quoted as a significant proportion goes through informal channels and is not reported. Reasons for this include: • High commission • Poor infrastructures in sending and receiving countries • Wide differences between official and black rate • Alternatives- bartering, people transfer • Control in dispensing to local rate by the receiver • To gain a greater understanding of the types of remittances and how to harness: • Family • Personal investment e.g. property(31%), business (38%), capital market (9%)etc • Community/Social investment (20%) • Pensions etc Need for Information

  7. The market depends on word of mouth no direct input by governments on creating the necessary infrastructures to bring about an open and transparent market with healthy competition. Most policies currently address the large flows by organisation but fails to enable the many private flows by the Diaspora who are taking personal investments at their individual risk into Africa. The aim would be to inform policy in both the sending and receiving nations on how best to ensure that “consumption remittances” is translated into “investment remittances Need for Information

  8. Benefits to African countries ability to: • translate some of the current cash transfer (30%) to formal channels ( increased FDI) • capture more information, plan and forecasts its FDI • create policy enhancers, alternatives and incentives to the private sector • Benefits to senders the ability to: • make more informed choices • more conveniently transfer e.g. direct debit • Benefits to recipients the ability to: • Receive on a regular basis and plan ( direct debit) • Receive more from the money sent • Consider investment options • Enable micro finance and credit capacity Need for Information

  9. Financial Capital- increasing number of Africans in the Diaspora are engaged financially with Africa either at micro-macro level

  10. Intensive information And awareness campaign - globally Expatriates Bridging the Gap Africans based locally/regional Misconceptions Negative information Lack/poor information No meeting point Fear of the Unknown Local-Regional-Global Access Africans in the Diaspora

  11. AfricaRecruit Dissemination Framework- Diaspora Investment Pathway Shared Vision forward looking Joint venture Shareholders Stakeholders Invest • Links • Networks Understanding both Diaspora and African perspectives Understand the structures and systems African Diaspora Africans in Africa

  12. Achieving the balance- turning the tide AfricanDiaspora Sabbaticals Interns Exchange Consultants Voluntary Temp Permanent Remmittances Diaspora Investment Micro finance Stock Market Real Estate Communication Links/Access Infrastructure Communication Access Retention Financial Capital Human Capital

  13. “You will never solve the problem with the mindset that created it” Albert Einstein

  14. www.africarecruit.com Thank you “Building robust and enduring productive capacity in Africa” www.findajobinafrica.com “The one stop employment search engine for Africa”

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