Transcript AFRICAN DIASPORA INVESTMENT

AFRICAN DIASPORA
Survey on Investment
29th September 2004
Financing African Development: Mobilising the Diaspora
DR T. BANJOKO
“Building robust and enduring productive
capacity in Africa
Background
•In 2001 remittances to developing countries stood at $72.3 billion, 42% of total
Foreign Direct Investment. In 2003 over $300 billion is estimated to have been sent
from developed to developing countries.
•This is the second largest source behind Foreign Direct Investment of external
funding for developing countries. It is a more stable source of capital than private
capital and is expected to rise.
•Africa accounts for approximately 15% ( $45 billion of the total global remittance
flow). It is estimated that remittances account for as much as 27% of the GDP, for
some African countries.
•Recent survey of the African Diaspora conducted by AfricaRecruit, indicated that
only 6% of the remittances sent by the Diaspora is reinvested.
“Building robust and enduring productive capacity
in Africa
Background-2
One of the conclusions a recent International Development Select Committee (UK),
9 month enquiry, was that “well-managed migration is hugely important,
economically and politically, because of the links it establishes between countries”.
If remittances are invested well, these funds could play a major role in reducing
poverty.
The development potential of remittances must be secured by encouraging the act of
remitting, reducing the costs of sending money home, and improving the investment
climate for remittances in developing countries.
AfricaRecruit is presently conducting a survey as a build up to the Africa Diaspora
Investment Forum taking place in London (19-20 November 2004) 600
questionnaires have been disseminated, of which so far 150 completed questionnaire
have been returned
“Building robust and enduring productive capacity
in Africa
Q1)Do you send money to Africa for other purposes other
than personal or family responsibilities such as schooling
or subsistence?
6%
No
43%
51%
Yes
Blank
Q2) On average how much ($USD) do you send each
month?
3200
2800
Amount in US Dollars
2400
2000
1600
1200
800
400
0
Individual Responses
Q3) On average how much in United states dollars a
month?
Percentage breakdown
Average amount sent home per month US dollars
30
25
20
15
10
5
0
under 300
dollars a month
300-500
600-1000
Amount per month
over 1000
Q4) What is the money used for?
What
What is the money used for?
40%
30%
20%
10%
0%
Community
or Social
Capital
Markets
Real Estate Setting up
Business
Others
Percentage breakdow n of completed questionnaires
Other areas
Q5) How do you transfer the money back “home”?
Percentage
Breakdow n
Methods of Transfer
40
30
20
10
0
Cash
International
Money
transfer
How
Financial
Institutions
Others
Q6) Which continent do you currently reside in ?
4% 7%
20%
Africa
Europe
North America
Blank
68%
Q7) Would you be interested in investment opportunities in
Africa?
Would like to Invest
9%
No
Yes
91%
•Areas of interest:
•Commodity trading
•Transport
•Telecommunication
•Power
•High- tech
•Healthcare
•Manufacturing
•Clothing
•Agriculture
Q8) What are the main obstacles preventing you from
investing more, or at all, in Africa?
Main Obstacles to investment
Breakdow n of Responses
60
50
40
Most Important
30
Important
Least Important
20
10
0
Lack of
transparency
No suitable
options
Personal
Obstacles
Poor or lack of
information
Poor or no
infrastructure
AFRICARECRUIT
Africarecruit
18 Pall Mall, London SW1Y 5LU
United Kingdom
Tel: +44(0)20 7024 270
Fax: +44(0)20 7024 8201
E-mail: [email protected]
Website: www.africarecruit.com
“Building robust and enduring productive
capacity in Africa