(c) Dr. Ken Ife THE DIASPORA DIVIDEND: DIASPORA AFRICA SME INVESTMENT TO AFRICA BY DR KEN IFE-( BSc, PhD, MBA, LLM ) International Development Consultant-London. Jul 05, Snr Visiting Fellow, University of East London. Africa Business Round Table.

(c) Dr. Ken Ife KEY HIGHLIGHTS Diaspora African Businesses and Professionals are strategic economic and political assets of Africa. We can, and we do invest substantially in Africa which accounts for 15% of FDI flows. In the USA, private sector FDI investment account for 85% of all fund flow to Africa. The diffusivity of the Diaspora African’s investment is largely directed to the nuclear family and has the greatest multiplier effect and as such the most impact on Poverty Reduction Strategies and the achievement of Millennium Development Goals. The returns on stocks, shares on various African Sectors such as Telecom, Banks can be as high as %, many times what you get in Europe. That we can do much more to increase investment flow into productive capacities, value added services and public/private sector partnerships, provided: We have more enabling legislative, political and deregulated economic environment. We are investing to develop our Strategic Knowledge Assets and help build a knowledge economy. Investment linked to export are particularly engaging for the Diaspora as they respond to NEPAD criteria; exploit European EBA and AGOA US-AGOA agreements; leverage public international AID, ODA, and multilateral funding, fully exploit MDB capacities for TA and CB etc.

(c) Dr. Ken Ife KEY FACTS Why invest in Africa Higher Return Contribute to the economic development of Africa The current situation is that FDI flows are US$300b in Africa and UD$45b is the Diaspora remittance which accounts for 15%. In the USA, 85% are private Sector Investment. But there are obstacles to overcome in increasing FDI flows. These include legislations, commission chargeable and enabling environment and security of investment. Stocks and Shares Africa stock market growth Africa stock market performance Typical dividend yield on banking investment Current investment opportunities-recapitalisation of Nigeria Banking Sector and Blue Chip Companies. Investment linked to trade export) EBA Agreements AGOA Agreements (access) to US$22Billion import.

(c) Dr. Ken Ife CHALLENGES These are also some challenges as strategic and local partnership. The NEPAD Strategic framework for private sector partnerships. This is to promote regional economic integration and co-operation. ADB prioritisation of private sector infrastructure investment in Gas, oil, water, road, ICT and market. Investment linked to Export-US, AGOA, ACP (pro-invest) and emerging Africa Infrastructures Fund. Priority Investment in Productivity Capacity US Agricultural Processing Low Fund Africa Productivity Capacity Development Initiative initial CFA allowed was £70m) Multilateral AID Flows to Economic and Social Projects- $100b in 5years went to social capital which will provide seed capital for social enterprise.

(c) Dr. Ken Ife KEY ARGUMENT Africa is considered a sleeping giant in a continent of great opportunities. I say the same of Diaspora Africans. We are sleeping giants in a land of immense economic, social and political opportunities. The great African entrepreneurial spirit of the African woman, the extended family system that underpins our social inclusion, the credit creation schemes and local capital accumulation strategies that finances our projects, the social networks that supports the businesses, the unwritten bonds and trust that permeates our business relationships, the mutual support of our extensive networking, our low propensity to save all eludes us in Diaspora. Otherwise how can you explain that despite (18000) African and Caribbean business in London contributing £10 billion disposable income less than 5% of us do business with one another increasing that to 70% and matching our demand to our supply would instantly match our business turnover to our projected purchasing power in London of £40b. How then do you explain 6m African businesses and professionals in Diaspora each of which each contributes US$186,000 to the economy of the West US (1.1 trillion dollars) only remits which is about US45billion dollars back to Africa (15%) of the total FDI of US$300b dollars, a low savings propensity. Estimated deposit of (US$180b) dollars of Nigerian deposit of foreign banks and two Nigerian banks in the City of London, yet little investment opportunities and virtually no credit facilities to support Diaspora African businesses. European EBA Agreements under the Lome Convention have opened up African imports to Europe and yet for over a decade no imports have taken place. USA AGOA Agreements of allowing (6000) duty free items are yielding some little but measurable results.