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African Business and Entrepreneurship Network

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Diaspora Investment Fund

The initiation of the Diaspora Investment Fund (DIF) was the result of collective events and ideas floating in Africa which no one felt responsible for. It is alleged in some areas that, in most African countries the legal tools created to enable citizens to cooperate on a nation-wide basis are not being used. Resources are not used economically or managed to form one consistent network of systematised representations. People in authority are not held accountable for their actions. Assets are not liquid and cannot be used to create credit or capital. Business organisations do not have statutes that allow members to work under one control, neither do they have the means to divide labour and control risks through limited liability and asset partitioning. Qualified citizens cannot be identified, and contracts are unable to reach a market outside the limited confines of family and acquaintances.

Hypothetically, let's assume there are 4 million nationals of all African countries resident abroad who are interested in the welfare of their countries, but can't be there on the ground to contribute their support. These people may be willing to contribute at least 100 Euros annually to solve problems in Ghana. This implie 400.000.000€ (400 million Euros) a year.

Stakeholders of this fund could convert the initiative into a business or any initiative positive that will contribute to the control and development of Africa. This fund, should be able to use the resources of the state to manage the needs of the people.

The African Diaspora, constitute the greatest Africa’s offshore asset and the most indispensable catalyst in the accelerated development of African home countries because Diasporas have a permanent vested interest in the welfare of their countries.

The ever-growing African Diaspora is poised for this unprecedented role by virtue of remittances which are already a significant and growing portion of the GNP of African countries. The sheer magnitude of remittances to Africa is staggering yet African Diasporas have nothing visible and collectively owned to show for it.

This phenomenon is apparent in virtually all African countries – a lot of money pouring in from the Diaspora but nothing monumental to show for it. The aggregate volume of remittances to Africa now exceeds all forms of foreign aid combined. And there is more where that comes from. Thus, Africans both at home and abroad are only limited by their creativity in terms of how best to exploit this external “gold-mine” of private funds for the common good. DIF is one such example of creativity that Africans in the Diaspora have embraced wholeheartedly.