DFID Working with the Diaspora:
Investment and Africa
Lisa Curtis – Private Sector Adviser, Sierra Leone
UK Department for International Development
6 October 2006
1 Palace Street, London SW1E 5HE
Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA
Why DFID works with the Diaspora
We will `build on the skills and talents of
migrants and other ethnic minorities
within the UK to promote the
development of their countries of origin’
The 1997 White Paper International Development, Eliminating
World Poverty
Two main strands to DFID’s work:
• Diaspora as a source of funds
• Diaspora as investors
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Diaspora as a source of funds
Remittances greater than aid flows:
Our aims:
Remove policy, legal and funding
barriers to remittance flows
•
Lower costs
•
Increase transparency
•
Expand choices
•
Improve access
•
Increase impact on
development
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www.sendmoneyhome.org
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Diaspora as Investors differ from
traditional investors
Investment Objectives:
Risk Assessment:
• Commercial objectives
• Better-informed through
social networks
• Social investment objectives
• Personal commitment
• Building a future for family
• Know how to access market
information
• Know how to navigate official
processes
•Longer investment horizon
• Diaspora investors are early risk-takers
• Well-placed to invest in SMEs
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Diaspora as Investors: Managing
investor perceptions
Value Index
Investment Flows (Illustrative)
High
barriers to
investment
Investment climate reforms
take effect
Diaspora
investments
Zone of market imbalances:
information, access,
FDI
limited competition.
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DFID’s work with Diaspora in
Sierra Leone
In Sierra Leone:
In Diaspora:
SL Business Forum Diaspora Activities
• Sierra Leone Diaspora
Network (UK)
• Sierra Leone Network (USA)
• Private sector contributing to
• Dissemination channels for
Technical Committees advising on
Admin Barriers reforms and
National Private Sector Strategy
• Diaspora group formalising and
participating in public-private
dialogue on policy reforms
information on reform programme
• Outreach on changing
investment climate, investment
opportunities, etc.
• Participants at International
Investment Forum and other
events
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DFID’s work with Sierra Leone
Diaspora: challenges and next
steps
• Understanding real drivers of investment decisions:
forthcoming study on investor perceptions and criteria
• Mobilising human resources as well as funds: PSD
Strategy Programme supporting initiatives that assist
diaspora entrepreneurs to access domestic finance
• Repatriating skills: With Africa Recruit, targeting diaspora
for recruitment to international positions in donor-supported
intitatives
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Contacts:
Xavier Lecacheur, Financial Sector Team
X-Lecacheur@dfid.gov.uk
Lisa Curtis, Private Sector Adviser, Sierra Leone
L-Curtis@dfid.gov.uk
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