Diaspora Finance Initiative
Co-funded by Comic Relief and UK Aid through the Common Ground Initiative and run by AFFORD, the “Diaspora Finance Initiative” aims to stimulate diaspora investment to create jobs and enhance Africa’s social economy. AFFORD believes strongly in the power of Africa’s diaspora to drive long-term economic growth and prosperity. The “Diaspora Finance Initiative” will support African diaspora entrepreneurs contribution by addressing the following challenges:
- Access to capital and the high cost of borrowing
- Information on scarcity of local markets
- Limited business support in transnational investments
- A lack of structured or diverse investment products
- Encourage and enhance UK-based diaspora investments to support small and medium sized enterprises.
- Provide business development support to diaspora entrepreneurs.
- Enhance transnational networks that facilitate social impact of diaspora investments in four target countries: Nigeria, Rwanda, Sierra Leone and Zimbabwe.
- Improve understanding of diaspora finance and investment practices to foster positive and effective policy response.
Impact 1: Decent jobs created through increased and diversified diaspora investments in SMEs in Africa
- A business planning competition “Diaspora Enterprise Accelerator” granting £30 000 to UK-based diaspora businesses to invest in innovative social enterprises in Africa, with £7500 match fund from each diaspora business.
Impact 2: Strengthened diaspora African networks and capacity-building
- AFFORD Business Club (ABC) provides business development support and mentoring to diaspora businesses
- Deepens partnerships with institutions in Africa to increase knowledge of diaspora investments and improve business development support to transnational investments
- ABC facilitates seminars and briefings to increase understanding of business opportunities in Africa
Impact 3: Improve understanding of diaspora finance and investment practices
- Policy actions that optimise volume of remittances through transaction cost reduction and remittance match-fund schemes
- Research on country investment fact sheets on “how to do business in….”
- High profile campaign on diaspora enterprise heroes
- Coordination of Diaspora Finance Initiative network coalition that will support research to improve international policy responses
Impact 4: African diaspora funds, skills and philanthropy mobilised and channelled to support the development of social economy in Africa
- A Diaspora Bond facilitating investments in Rwanda.
- Online “Diaspora Philanthropy” platform to support diaspora initiatives in Africa