Transcript African World Business Congress 2005

1st Meeting of ACP Ministers:
Asylum, Migration and Mobility
11th- 13th April 2006
Brussels
By Dr Banjoko: AfricaRecruit
Presentation by AfricaRecruit
Content of Presentation
Who we are
Context: why the Diaspora
Skills Capabilities
Challenges
Remittances and Investment Capabilities
Challenges
Recommendations
Who we are
New Partnership for Africa’s
Development (NEPAD)
Commonwealth Business Council
Commonwealth Secretariat
Capacity Building with
Diaspora as a driver
AfricaRecruit
Enabling best practice
Surveys, Seminars,
Analysis
Think Tank
Findajobinafrica.com
Enabling Skills
Mobility
Africa Diaspora
Enabling Investments
"AfricaRecruit one of The New Partnership for Africa's Development (NEPAD) big
achievements for just 4 years" The Journey So Far NEPAD Secretariat June 2005
The Concept
 To attract & encourage
those who have left
 To recruit from a global
pool
 To retain quality skills
 To tap into skills while they
remain in the West
 To build human resource
capacity
 To enable investment
 To inform policy
To facilitate and
enable traffic in
both direction’s
What have we done
Human Resources/Skills Remittances/Surveys
 5 successful Human Resource (HR)
forums
 Healthcare mobilisation forum
 Conducted in-depth surveys of Brain
drain
 Developed a regional wide HR ENewsletter
 Database of Skills, Advertised over
12,000 jobs in 5 years
 3 International career/recruitment
fair’s inside and outside Africa
 Return of over 500 Africans in the
Diaspora/year and retained skills
within Africa
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2 Diaspora Investment Forum’s
2 Sierra Leone Diaspora Investment
Consultative Forum
Conducted in-depth surveys of over
2,000 Diaspora on remittances and
Investments
Facilitated and supported numerous
Diaspora investment/business
conferences in Europe/North
America
Showcase success stories
"When AfricaRecruit was launched in 2002, I provided an endorsement in the firm belief that
its objectives were not only noble but also realizable. Since then, the initiative has performed
creditably and become a key part of the NEPAD programme to mobilize quality skills for
Africa.“ H.E. Chief Olusegun Obasanjo, President Federal Republic of Nigeria
Outcomes so far
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2,000 African Diaspora back to Africa over the last 4 years
Increased skills and knowledge circulation to Africa by the Diaspora
Retention of Skills in Africa
Increased investment by the Diaspora in Africa this can be estimated at
over 3 billion US dollars annually
Increased engagement of the Diaspora in Africa as demonstrated by the
increased number of events, conference
Operational and Policy Changes to facilitate and enable Diaspora
engagement e.g. road shows, dual nationality
Increasing recognition, partnership, integration at policy and operational
levels by both host and sending nations
Produced 8 reports
“Africa Recruit is also important as a vehicle for dialogue between Africans living in
and outside the continents, which can create a dialogue with professionals in the
Diaspora, and look at ways in which African governments can help foster the flow of
skills back to Africa.” NEPAD Secretariat
Context: Why the Diaspora?
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Globalisation- Partnership
Value of national currency- RemittancesInvestment
Demand from the West
Push factors from Africa
Choice- Freedom to move
Premium value on skills and knowledge
Local, Regional action with a global perspective
Enable and Facilitate all stakeholders
What is vital is mobilizing the Diaspora using a vehicle or
mechanism that would collect and disseminate pertinent
information about the opportunities, challenges, prospects and
issues that the Diaspora needs to know, in order to make
informed decisions and plans to engage constructively with their
country.
Essentially, valuable and practical information would be the
premier ingredient necessary to convince, mobilize or energize
the Diaspora to play responsible roles in rebuilding /contributing
to their countries of origin.
Breakdown by Location (Host Country)
Middle East
4%
Asia
6%
Africa
14%
Europe
34%
Globally dispersed
Larger number of
Diaspora in USA
North America
42%
Breakdown by Nationalities on skills database
(Sending Country)
 One out of every 35 person worldwide is a
Diaspora
 60% of the Diaspora are in the West
 48 % of Diaspora are women ( Source IOM)
30%
25%
 Every African country has a pool of highly
skilled personnel in the Diaspora
20%
15%
10%
5%
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Skills Capabilities
Over 1 million hits a month, 20,000 users a month of the Diaspora from all
industries access jobs at www.findajobinafrica.com in all industries, total entries
on skills database 58,000 plus, mailing list of 120,000 plus
Percentage Breakdown
% Breakdown of users by Experience
30%
25%
20%
15%
10%
5%
0%
0-1
1-2
2-3
3-5
Number of Experience
5-10
Over 10
Opportunities to tap…
Engage energy and interests of
Diaspora
• Link with available networks
• Data on skilled professionals abroad
• Links with migrant professionals
network
• Develop opportunities to share
experience and skills with their
colleagues ‘back home’ on a
consultancy or shared approach
basis, or in fact on a ‘virtual’ basis.
• Harness the motivation and skills of
the Diaspora
• Focus on temporary return & improve
chances for permanent return
Improve remuneration including
“non-monetary”
• De-linking remuneration from
normal government salary
structures
• Better salaries, benefits, and
working conditions
• Opportunities for flexibility
• Training options e.g. links
• Soft Landing package
Methods of Engaging the Skills –circular
movement of skills process
Consultancy
Mentorship
Sabbaticals
areas of critical
shortages or difficult
to attract countries
Permanent
Voluntary in
ADDED VALUE
Skills ….
Skills
Repatriate –
Expatriate
areas with limited
capacity to compete
in a global market
place e.g. Health
and Education more
support in this areas
by donors
Exchange in areas
Interims capacity
skills transfer e.g. donor
programmes
building e.g. SME’s
start up, new
programmes
Interns for
graduates e.g. 2nd
generation Diaspora
Chair/Advisory/Board
of regional
organisations
Case Study- mobilising healthcare
professionals in the Diaspora
Mobilisation of Diaspora all stakeholders inside and outside Africa
attended by over 500 with over 400 Diaspora healthcare professionals
completing the online survey
Need for a
Why they left
coherent
Some do intend to return
global effort
• Personal
and sustained
• Professional
national
programmes
• Political-Economic
Some are now being
at policy and
facilitated to
operational
levels
Overview of Respondents
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436 Diaspora respondents (17th March 2006)
Over a third recruited while in Africa
Final country of migration is the United States of America and
Canada
Various routes of exit are explored potentially starting with the
countries of least resistance to entry
Total number of years worked in the West 2,426 years
Average value personnel for 350 approximately 1.2 US billion
annually
Over 100 billion US dollars contributed annually to the West in
personnel value ( if scaled up for the million plus healthcare
workers in the West)
The Diaspora are very actively involved either at individual or
association level
Profile of Diaspora-Countries practised, reason for
leaving, country of origin and professional 1 of 2
Belgium,
Congo
(DRC),SwitzerlandLeft country when
young. Nationality
Cameroon
(Medical doctor)
Saudi Arabia, Sudan,
United Kingdom
trained in Egypt from
Sudan left for higher
education and
training (Medical
doctor)
Afghanistan, Canada,
Egypt, France, Gabon,
Israel, Canada. Left for
political reason and
gain experience.
Country of origin Chad
(Medical doctor)
United Kingdom,
United States
from Ghana. Left
for training
(Scientist)
Oman, Saudi
Arabia, United
Kingdom. Left
for professional
reasons.
Country of
origin Sudan
(Medical doctor)
Profile of Diaspora-Countries practised, reason for
leaving, country of origin and professional 2 of 2
Ethiopia, Switzerland,
United Kingdom. Left
due to political
difficulties from
Sudan trained in
Zimbabwe(medical)
Ghana, Liberia,
Sierra Leone,
United Kingdom
left for political
reasons from
Gambia
Ireland, United Kingdom,
United States. Left for
economic reasons from
Nigeria (Nurse)
United Arab
Emirates,Unit
ed States left
for economic
from Nigeria
(therapist)
Portugal, United
Kingdom. Left to
gain international
experience –
therapist
Italy, United
Kingdom
from
Cameroon
(medical)
Why did you leave Africa? 1 of 3
Personal
Professional
Government/
Political
 Join husband
an start family
 Born in the UK
and was not
paid for some
months
 Parents
migrated
 University studies
 Pursue Undergraduate Studies
 Acquire more knowledge
 Training
 Enhance perspective on global
matters
 Specialist Training
 Unstable political
Environment
Why did you leave Africa? 2of 3
Personal
Professional
Government/Politi
cal
 Marriage
 Settlement
 To support
husband while he
was studying
 Sent to school in
UK and never
went back
 Professional
development and
better
remuneration
 Scholarship
 Redundancy
 Practice safe
medicine
 Refugee
 Lack of professional
encouragement and
government policies
 Crime and insecurity
Why did you leave Africa? 3 of 3
Personal Professional
Government/Political
 Study abroad
 Affirmative action in South
Africa = Reverse Apartheid
 Not able to practice
clinical pharmacy
 Anti-Apartheid
 Postgraduate Degree  Tribalism
in Sports and Exercise
Medicine
 Poor opportunities
Role of Government’s
 Use skills base to gain competitive advantage in the global
economy
 Africa needs improved strategic thinking to enhance the
synergy between skills and economic policy, link skills
strategy with trade and industry and provide opportunities for
innovation.
 Africa ability to trade in the global market place is linked to its
ability to use skills to add value to domestic produce and
ensure products meet quality standards for export more
importantly move up the value chain- less raw materials
more finished goods
 Cooperation and exchange between enterprises,
government and higher learning institutions
“To unlock the vast human potential of Africa, we will work with Africa to create an environment where its most
capable citizens, including teachers and healthcare workers, see a long term future on the continent. We will work
with committed national governments in creating that environment” Investing in People-The Gleneagles
Communiqué G8 Conference July 2005
Role of Government’s-2
 Work harder to improve mobility of skills in Africa
 Effective agreement or code of conduct with developed
countries to limit or compensate for transfer of skills in areas
of critical needs
 Address cultural, social, religious or ethnic barriers
 Terms of Reference with Investors to include transfer and
building of skills locally
 Strategies that promote long term skills development
programmes
 Reform plans to attract and retain not only foreign
investment, but its citizens across the world and those at
home to invest either human or financial capital in Africa
“To unlock the vast human potential of Africa, we will work with Africa to create an environment where its most
capable citizens, including teachers and healthcare workers, see a long term future on the continent. We will work
with committed national governments in creating that environment” Investing in People-The Gleneagles
Communiqué G8 Conference July 2005
Role of Employers
 Closer cooperation between the private, public and civil
society sectors
 Identify and dissemination of best practices
 Share lessons learnt
 Identify effective actions for governments to make labour
market more flexible
 Innovation creates new businesses and present new
challenges and opportunities. The arrival of
telecommunication to Africa created new opportunities for
businesses that are now thriving as well as employment for
its citizen
“Appointment of the heads of international institutions should be decided upon by open
competition which looks for the best candidate rather than by traditions which limit these
appointments by nationality” Commission for Africa – Recommendation on leaving No-One Out:
Investing in people
Remittances and Investment Capabilities: growing phenomenon
 In 2001 remittances to
developing countries stood at
$72.3 billion, 42% of total
Foreign Direct Investment
(FDI).
 2003 estimated $300 billion.
2nd largest source behind FDI
of external funding for
developing countries. More
stable source of capital than
private capital and is expected
to rise.
 Africa =15% ( $45 billion of the
total global remittance flow).
Diaspora double
the flow of Aid to
Africa in the last
10 years
Diaspora Investors :
200
180
160
140
120
100
$bn
80
60
40
20
0
-20
Emerging Investors
Foreign Direct
Investment
Remittances
Official flows
Capital market flows
1997
1998
1999
2000
2001
Source:DFID presentation at Africa Diaspora Investment 2005
2002
Breakdown of Remitters for
Sustenance Reasons
52% of those
that remit for
sustenance also
remit to invest
No
42%
Yes
58%
Source: Analysis of AfricaRecruit survey of 880 Diaspora
build up to the week long Diaspora Investment Forum September 2005
Breakdown of Sustenance Flows
35%
30%
25%
20%
15%
10%
5%
0%
>300 US $ /
month
0-50 US $ /
month
100-150 US $ 150-200 US $ 200-300 US $ 50-100 US $ /
/ month
/ month
/ month
month
Breakdown of Remitters for
Investment Reasons
Yes
33%
No
67%
0%
Investment Options
Real Estate;
Private
Equity/Venture
Capital
other
Friends and
family
businesses
Franchise
Diaspora Fund
Capital Market
(Stocks and
Shares)
Percentage Breakdown
Breakdown of Investment Options
30%
25%
20%
15%
10%
5%
Breakdown of Investment Flows
50%
45%
Percentage breakdown
40%
35%
30%
25%
20%
15%
10%
5%
0%
>300
USD/month
0-50
USD/month
100-150
USD/month
150-200
USD/month
Amount per month in US Dollars
200-300
USD/month
50-100
USD/month
Profile of Remitters- Currency in US dollars
Sierra Leone in UK,
profession media remit
0-50 a month for
sustenance and 50-100
for community projects
Zimbabwe in UK, 150200/month and SME’s
Kenyan in US, business
consultant 200-300/month
sustenance and 100150/month investment e.g.
capital market
Cameroon in Europe,
medical doctor remits
150-200/month
sustenance only
interested in
investment
From Zaire in Canada 150200/month for sustenance
interested in property
Somalian in
UK consultant
100150/month
sustenance
South African
student in UK
remits for
sustenance
interested in
setting up
business
Retired Nigerian in UK
150-200/month for
sustenance and
community projects
Malawi 50-100/month for
investment only
Challenges to Investment
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Political instability
infrastructure
Access to funding
Beaucracy and
corruption
 Lack of Knowledge of
the local markets
 Ineffective systems
 Lack of Information
 Lack of clear investment
laws, weakness of the
law system
 Property rights judiciary
and legislation need to
be strengthened
 Macro-economic
imbalances, inflation
and over regulation
Challenges- 2
 No "One stop shop" no
central point
 Infrastructure are transborder; often there is no
uniformity of policy
 Lack of technology and
qualified human
resources particularly
with competent
management skills are
lacking
 market information gap
 Trade barriers between
developed countries
and the third world
 Lack of collaboration,
government mechanism
are not encouraging,
public management is
poor,
 Lack of urgency and a
'can-do' mentality
 lack of appropriate
strategy which is based
on strategic alliance
Practical Example of enabling remittance
One of the conclusion from International Development
select committee UK, 9 month enquiry concluded that “wellmanaged migration is hugely important, economically and
politically, because of the links it establishes between
countries”. If remittances is invested well, these funds could
play a major role in reducing poverty.
The development potential of remittances must be secured
by encouraging remittances, reducing the costs of sending
money home, and improving the investment climate for
remittances in developing countries.
http://www.sendmoneyhome.org/
Recommended Solutions
 Effective Government
and corporate
partnerships
 Provide stable political
and economic cum
enabling conditions for
confidence building to
attract foreign investors
 Attractive business
start-up incentives such
as low tariffs/
reasonable loans
 efficient market system,
efficient transport system,
documentations and
banking facilities
 culture or attitude that
welcomes investment and
trade
 lean regulatory framework
 Investment guarantee
measures
 Tighter corporate
governance, mechanisms
for credible governing and
monitoring
Harnessing the capital of the Diaspora
 Balanced representation of Africa in the West- bridging the
perception gap
 Identify champions Diaspora leads with credibility
 Process of enabling the Diaspora to build skills for transfer
 Building a database of skills, where and what
 Showcase steps taken that have been of value to the
Diaspora e.g. bottom up engagement
 Online information on job opportunities and vacancies which
is actively marketed to the Diaspora
 Improving access to job opportunities
Presentation by AfricaRecruit
Harnessing the capital of the Diaspora
 Fund an outreach programme to engage the Diaspora
and get a baseline understanding of the key stakeholders
and their objectives
 Diaspora to organise themselves into networks,
organisations to enable effective engagement
 Build strategic partnerships between other host countries
to enable transglobal policy enhancers
 Circular migration encouraged
 Financial incentives to increase remittances from informal
to formal
 Non-financial incentives
Presentation by AfricaRecruit
Role of Business
 Increased involvement of the private sector in particular the
financial sector to develop policy, create more packages and
incentives to encourage formal flows of remittances
 Closer cooperation between the private, public and civil
society sectors
 Increasing partnership with Diaspora Investors
 Engaging Diaspora in global supply chain lines
 Understanding the investment needs of the Diaspora
 Providing transparent information on investment
opportunities
Africa’s Diaspora one of Africa’s
greatest off shore asset
Thank you
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