Here is a trend that The Benin Epilogue has not yet addressed which has been growing steadily over the last several years. Africa's expatriates living abroad in the Diaspora are indirectly strengthening Africa's economies.
African migrants abroad are helping to bring about an economic boom in Africa in two ways:
Here are some key numbers, provided courtesy of Africa Recruit:
Here are some additional figures:
The following is a quote from the Kenya Diaspora Investment Forum that recently took place in London over the past weekend:
"Top African receiving countries are Egypt ($3.4bn), Morocco ($2.2bn), Nigeria (1.7bn), and Tunisia (0.8bn). In 2002 remittances to Nigeria ($2bn) accounted for 5% of the GDP playing a large part of the economy positively helping the balance of payments."
"The Government estimates that the Kenyan Diaspora remits close to $600 million every year to their families and for Investment purposes (Kelley 2005): Source Economic Commission for Africa Report on International Migration and Development: Implications for Africa September 2006."
Another interesting note on this trend is that these remittances are expected to continue growing over time. Of course this movement is not without challenges. There are several challenges to Diasporian Investment that I have heard on several occasions. The two that seem to be more major are the small numbers of "one-stop-shop" business start-up/investment centers in Africa and also the ease of obtaining information (or lack thereof) relative to making investment decisions.
However, over time I believe that these are obstacles that can and will be overcome. The sheer growth in numbers of Africa's Diasporian ( plus Foreign Investors) investing in Africa almost neccessitates this. Furthermore, these challenges and risks could be part of the reason that Africa's stock markets have outperformed some of the world's most bullish markets.
I believe that the continuance of this trend could bring about a full scale economic renaissance accross the African continent. Those are my thoughts, but we'd like to hear yours.
Also, do you have any experience in this area that you would like to share? Or is it something that you have considered-we'd like to know. Please feel free to post your comments below.
This link was provided by Joel but since it did not display properly, I have put it here
it is a page that discusses the reasons to invest in Kenya. Thank you very much Joel!
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Monday, December 11, 2006