The Diaspora Investment Conference is going on at KICC from 13th to 15th December 2023 under the theme “Tujenge Kenya: Bridging borders, building futures”. The importance to the Kenyan economy of the diasporians has been demonstrated by the fact that it has overtaken the traditional sources of foreign exchange earner for Kenya as per the 2022 data, where it earned the country $4.027 billion while tea earned $1.2 billion, Horticulture earned $ 901 million, chemicals earned $ 521 million, coffee earned $ 307 million and the petroleum products earned $77 million. Diaspora remittances are almost overtaking our entire export economy which earned $5.77 billion in 2022, where the difference is only $1.743 billion for the same year. The investment conference comes on top of the heels of the 9th annual Kenya Diaspora home coming convention held from 7th to 9th December 2022, under the theme “leveraging diaspora resources for inclusive growth”. In order to reciprocate the good standing of our diaspora, three things are needed and should be discussed in the investment conference and more effective ways of their implementation agreed upon.
First, there is need to encourage more investments at home through the establishment and operationalization of the diaspora bond, which can be used for infrastructure financing, bank capitalization and debt management. Successful diaspora bonds should have the following 4 attributes: first the bond issuers should endeavour to strengthen the governance of the bonds, including reporting in detail how the proceeds are used; secondly, Policymakers should clearly demonstrate the link between the bonds and a credible country development strategy that advances sustainable economic growth and fosters a conducive investment climate; thirdly, such bonds should target specific projects or enterprises that produce sufficient economic value to support repayment of the bond, as well as meet significant needs of the broader population, like agricultural transformation and infrastructure; fourth, the bonds should enhance the credit of bonds in line with the standards of international development agencies and financial institutions.
Secondly, we should increase the utilization of the human capital from the diaspora through knowledge transfer from the diaspora back to the home country through collaboration, mentoring and training on various issues of national importance like the issues to do with the economy, debts servicing and management, education reforms, savings, manufacturing & agriculture transformation. Thirdly, there is need to leverage on the diaspora to promote trade, investments, research, innovation and knowledge/technology transfer, including working with the diasporians to create and operationalize the diaspora Sacco to increase savings and investments. Dr Giti is an urban management, public – private partnerships (PPP) and environment specialist. mutegigiti@gmail.com , @danielgiti
Dr. Daniel Mutegi Giti 