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Remittances from Africans abroad hit $40 billion mark

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BAK, Apr 9, 2011.

  1. BAK

    BAK JF-Expert Member

    Apr 9, 2011
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    Remittances from Africans abroad hit $40 billion mark Saturday, 09 April 2011 10:44


    Thirty million Africans across the globe have directly invested $40 billion into the continent's economy in 2010.According to a survey carried by African Development Bank and the World Bank recently, Africans investment ranged from land purchases, building a home, and starting a business top the highest remittances by Africans in diaspora whilst education was the second-highest use of remittances from outside Africa into Nigeria and Uganda; the third highest into Burkina Faso, and the fourth highest into Kenya

    Report on African countries remittances, skills and investments are jointly carried out by the African Development Bank and the World Bank as part of the Africa Migration Project. The project has the financial support of the African Development Bank; the Canadian International Development Agency (CIDA); the Department of International Development (DFID); the French Ministry of Immigration, Integration, Asylum and Solidarity Development; the Danish Ministry of Foreign Affairs; the International Fund for Agricultural Development (IFAD); and the Swedish International Development Cooperation Agency (SIDA).

    A breakdown of the $40billion investment showed that Nigerians in diaspora invested 57 per cent; 55 percent in Kenya; 36 per cent in Burkina Faso; 20 per cent in Uganda and Senegal, 15 per cent.
    Mr Hans Timmer, director of development prospects at the World Bank said there is possibility for the figure to increase arising from increasing population of the continent

    He said, "Migration pressures will only rise in the future as a result of demographic changes of rising population in Africa and falling labour forces in Europe and many developed countries," said. "Therefore, adapting policy responses to demographic forces and crafting multilateral arrangements for managing future migration is essential."

    Timmer stated, "Two-thirds of migrants from Sub-Saharan Africa, particularly poorer migrants, go to other countries in the region, while more than 90 per cent of migrants from North Africa have moved outside the African continent.
    The top destinations for African migrants are France (9 per cent of total emigrants), Cote d'Ivoire (8 per cent), South Africa (6 per cent), Saudi Arabia (5 per cent), and the United States and the United Kingdom (4 per cent each).

    Mr Shantayanan Devarajan, chief economist of the Africa region at the World Bank said, "Migration of skilled labour is particularly high in small and low-income African countries, which already have low levels of human capital. Fragile and post-war countries face even bigger challenges because of the flight of human capital.

    African governments and policy makers should focus on increasing education and skill levels and establishing an environment in which high_skilled workers have productive opportunities at home."

    Dilip Ratha, main author of the report and lead economist at the World Bank in his on submission said African governments need to strengthen ties between Diasporas and home countries in order to protect migrants, and expand competition in remittance markets else the potential of migration for Africa remains largely untapped.

    According to Ratha, "One innovation worth considering are diaspora bonds, which are sold by governments or private companies to nationals living abroad. These bonds have already been successful in tapping into assets of Israeli and Indian citizens living abroad".

    "Sub-Saharan African countries can potentially raise $5-$10 billion a year in diaspora bonds. Countries with large diasporas in high-income countries that can potentially issue diaspora bonds include Ethiopia, Ghana, Kenya, Liberia, Nigeria, Senegal, Uganda, and Zambia in Sub-Saharan Africa and Egypt, Morocco, and Tunisia in North Africa".

    Diaspora bonds
    "Diaspora bonds can be sold globally through national and international banks and money transfer companies. They can be marketed through churches, community groups, ethnic newspapers, stores, and hometown associations in countries and cities where large numbers of migrants reside."(Agencies)
  2. Saint Ivuga

    Saint Ivuga JF-Expert Member

    Apr 9, 2011
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    where is Tanzania?