Survey on Investment 29th September 2004 AFRICAN DIASPORA Survey on Investment 29th September 2004 Financing African Development: Mobilising the Diaspora DR T. BANJOKO “Building robust and enduring productive capacity in Africa

Background In 2001 remittances to developing countries stood at $72.3 billion, 42% of total Foreign Direct Investment. In 2003 over $300 billion is estimated to have been sent from developed to developing countries. This is the second largest source behind Foreign Direct Investment of external funding for developing countries. It is a more stable source of capital than private capital and is expected to rise. Africa accounts for approximately 15% ( $45 billion of the total global remittance flow). It is estimated that remittances account for as much as 27% of the GDP, for some African countries. Recent survey of the African Diaspora conducted by AfricaRecruit, indicated that only 6% of the remittances sent by the Diaspora is reinvested. “Building robust and enduring productive capacity in Africa

Background-2 One of the conclusions a recent International Development Select Committee (UK), 9 month enquiry, was that “well-managed migration is hugely important, economically and politically, because of the links it establishes between countries”. If remittances are invested well, these funds could play a major role in reducing poverty. The development potential of remittances must be secured by encouraging the act of remitting, reducing the costs of sending money home, and improving the investment climate for remittances in developing countries. AfricaRecruit is presently conducting a survey as a build up to the Africa Diaspora Investment Forum taking place in London (19-20 November 2004) 600 questionnaires have been disseminated, of which so far 150 completed questionnaire have been returned “Building robust and enduring productive capacity in Africa

Q1)Do you send money to Africa for other purposes other than personal or family responsibilities such as schooling or subsistence?

Q2) On average how much ($USD) do you send each month?

Q3) On average how much in United states dollars a month?

Q4) What is the money used for? Other areas

Q5) How do you transfer the money back “home”?

Q6) Which continent do you currently reside in ?

Q7) Would you be interested in investment opportunities in Africa? Areas of interest: Commodity trading Transport Telecommunication Power High- tech Healthcare Manufacturing Clothing Agriculture

Q8) What are the main obstacles preventing you from investing more, or at all, in Africa?

AFRICARECRUIT Africarecruit 18 Pall Mall, London SW1Y 5LU United Kingdom Tel: +44(0)20 7024 270 Fax: +44(0)20 7024 8201 E-mail: info@africarecruit.com Website: www.africarecruit.com “Building robust and enduring productive capacity in Africa