Economic Development
Wherever they go, Africans have created community organizations in a show of identity and solidarity in the diaspora regardless of their countries of origin. Economically, the African diaspora over the years has been viewed as a major catalyst for the development potential of the African continent. According to the World Bank, although there are voluntary and involuntary Africa diaspora residing outside of Africa, their interests often intersect with a mutual love and investment stake in Africa. The United States is Africa’s largest trading partner with an approximated $24 billion dollars remitted by Africa to the United States in 2002. Besides, the United States spends over $2 billion dollars annually as donor aid to Africa for developmental and humanitarian aid. Furthermore, In the United States alone, African American citizens have an annual collective purchasing power over $450 billion dollars. Moreover, African immigrants to the United States have attained some of the highest educational attainments with over 250,000 scientists and physicians of African origin. Emigration of skilled Africans has been viewed as a disadvantage due to the brain drain of skilled Africans to the west in search of better pay, better trade opportunities, lucrative investment opportunities and acquisition of better knowledge. However, China and other Asian countries for instance have tapped into their lucrative diaspora as a source of knowledge and external investment.
To this regard, African states have created financial instruments that facilitate business contributions of the diaspora to the region. There have been initiatives over the years to establish cross border payment systems like Western Union and M-Pesa global in Kenya. African governments like Ethiopia and Rwanda have recognized the economic value of their diaspora members and encouraged investment through polices and direct government involvement in establishing links to their respective Diasporas.
Ethiopia for example grants its diaspora members a yellow card for investment whereby members investing in the country enjoy the better benefits and rights than domestic investors. They enjoy tax exemptions for seven years and a 100% duty free importation of equipment and machinery. They also receive 0% customs charge on spare parts and total value of goods imported. These incentives have initiated growth in small and medium enterprises in Ethiopia facilitated by diaspora investment that are otherwise expensive to run by nationals living in the country.
Conclusion
In conclusion, although the customs, religions and art forms of African immigrants are often reshaped by the new realities in their host communities, they undoubtedly form a part of the culture of their host communities. Moreover, their identity and sense of belonging to their homeland Africa is always present in their investment decisions and cultural practices.
Dickson Soire
Afrikagora Magazine
