This is a presentation by Dr. Worku Negash Motbainor, Associate Professor, Ph.D. Program Coordinator Ethiopian Civil Service University, at the 3rd Annual East Africa Finance Summit

1. EAST AFRICA FINANCE
SUMMIT
The Role of African Diaspora
In Financing the Continent’s Future
18 December 2018
UNECA Conference Center
Worku Negash Motbainor, Ph.D.

2. Introduction
 Appreciation
 Self Introduction
 Topic Introduction
 Definition: Group of persons who have migrated and
their descendants who maintain a connection to their
homeland.
 AU: African diaspora is a group of people consisting of
African origin living outside the continent irrespective of
their citizenship and nationality and who are willing to
contribute to the development of the continent and the
building of African Union.

3. History
 Humans have always migrated – it has not stopped
 African Migration in Three Waves
 1st Wave – 16th Century
 12 million to western Europe, South and North America
 Forced
 Continued for 400 years
 2nd Wave – Post-Independence (1960s+)
 After 100 years of colonial rule
 Millions to Western Europe, USA
 For economic and educational purposes
 3rd Wave – 1980s Forward
 Fleeing failed governments, wars, poverty, political persecution

4. Diaspora Not Monolithic
 Highly successful
 Academically – Ethiopia, Nigeria in the academe
 Financially
 Socially
 So-so; plain-vanilla
 Struggling
 Diverse and dispersed
 Multigenerational (descendants just as important)
 All of them can bring value; albeit to different degrees

5. In Perspective
 Continent to be understood in light of the 400 years of bondage, 100 years
under colonialism and only 60 years of independence
 140 million African diaspora globally – people of African origin (Brazil, US,
France, UK)
 30 million Diaspora - Africans who emigrated in the last 60 years and their
descendants, who maintain some connection to continent
 40,000 Africans with Ph.D. work outside the continent. 250,000
scientists/physicians in USA alone
 20,000 Africans leave the continent each year
 8 in 10 global migrants are from Africa
 Over 100,000 expatriates hired in Africa to fill professional gap at cost of $4
billion per year
 Africa is losing for lack of competitiveness - use sons and daughters of Africa

6. Significance
 African diaspora well endowed in all arenas:
 Financial
 Intellectual
 Professional
 Political
 Cultural
 Music
 Arts
 Sports
 Social

7. High Value for Africa
 Have everything other expatriates can bring, and
more
 Passion
 Good will
 Reinvest in country
 Invest only in country (businesses; help relatives,
friends)
 Unlike foreign investors (minimize spending here)
 Buy local (houses, automobiles, etc.)
 Bring diversity of ideas
 Active in local issues (politics, associations)
 Good role models

8. Diaspora Capacity
 $40 billion in remittance, annually to Africa
 $23 billion to Nigeria
 $5 billion – Ethiopia
 26% of GDP to Liberia
 $53 billion annual saving
 $613 billion – global remittance in 2017
 Largest recipients: India, China, Philippines
 Largest remittance source country: USA, Saudi Arabia, Russia
 Informal money transfers estimated to be larger than official remittances – by
far
 Frequent visits to homeland

9. Diaspora Remittances
Better than Foreign Aid
 Overseas Development Assistance not as attractive
 Less likely to be misappropriated
 Funds focus directly on families
 Distribution efficient with no bureaucracy, and reach
target
 Ambitious African development plans in 21st
Century call for harnessing diasporas
 Source: Adams Bodomo – University of Vienna
World Economics Vol 14, No 4, 2013

10. Shift in Attitude
 Government –Build credible strategies to engage the diaspora;
they can make great partners – repatriate as do Asians
 Ordinary folk – Recognize diaspora have changed
 Institutions – Treat them equally or better than expats
 People in positions of power – Responsible to shift attitudes
 Example from 1996 to present
 Accept diaspora as they truly are
 Experts, equal to expats
 They bring high value
 They are natives as well as expats – a bonus

11. Agenda 2063
 Agenda 2063 – The Africa We Want
 50 year continental vision
 Build an integrated, prosperous and peaceful Africa
 Aspires to have:
 Good governance, democracy, justice and rule of law
 Strong cultural identity, common heritage, values &
ethics
 Plan to use its vibrant youth, women and men
 Strong, united, resilient and influential global player and
partner
 The African Diaspora in a position to further this
agenda!

12. THANK YOU!