Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 1 Auteur, Strategic Economist, UNIDO Director, Afrology Think Tank Group Tel. et Fax: – – – Leveraging the Africa Diaspora CREATING EFFECTIVENESS OF THE REMITTANCES Presented by Dr. Yves Ekoué Amaïzo

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 2 Contents Introduction: From migration to Diaspora 1.Increasing Workers remittances: a sign of increased Poverty in sub-Saharan Africa? 2.Creating effectiveness of the remittances in Africa Conclusion: Towards collective efficiency

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 3 Introduction: From migration to Diaspora

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo Source: Gildas Simon, “International migration trends, Population & Sociétés, n. 382, INED, September 2002; Géodynamique des migrations internationales dans le monde, PUF, Paris, 1995; OECD, International Migration Trends, SOPEMI, 2001, Migration in the World : , in millions Immigrants = People living outside their country of origin, or their country of primarily citizenship Diaspora = People living outside their country of origin, or their country of primarily citizenship Since many years or centuries

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 5 1. Increasing Workers remittances: a sign of increased Poverty in sub-Saharan Africa?

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 6 Source: Data from ADfB, African Development Report Real GDP Growth rates in African Sub-regions, ( in Percentage) None of the African sub-regions reached 7 % of GDP as suggested in the MDG 5. Southern Africa 2. Central Africa 1. Northern Africa 4. Eastern Africa 3. Western Africa Unworkable Millennium Development Goals in 2015 ?

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 7 Source: Data from ADfB, African Development Report Sectoral Growth rates in Africa, ( in Percentage changes from preceding year) Lower Commitment to Manufacturing ? From 3.3 % in 1999 to 2.3 % in 2003 Better performance of Africa in Services 4. Manufacturing 2. Services 1. Industry 3. Agriculture

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 8 Debt generating resources Non Debt generating resources (net resource flows) 1.Long-term debt 2.Short-term debt  Public and publicly guaranteed  Private non guaranteed 1.Foreign Direct investment (net) 2.Portfolio Equity flows 3.Grants (excluding tech. coop.) 4.Technical Cooperation grants 5.Balance of Exports minus Imports of goods and services 6.Workers Remittances Source: G. Johnson and K. Sholès, Stratégique, Publi-union, Paris, 2000, see Chapter Main financial resources transferred to Africa

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo Source: World Bank, Global Development Finance, 2004, pp. 2 and 26. Share of Africa from the net resource flows and transfers all Developing Countries (in Billion dollars and percentage) $ US 4,000 millions $ US 80 millions

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo Source: Global Development Finance 2003 Net resource flows and transfers (selected regions), (in US $ million) Europe and Central Asia East Asia and Pacific Sub-Saharan Africa Latin America and Caribbean Middle East and North Africa

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo Source: Data from Global Development Finance Debt generating resources versus Non debt generating resources, in Sub-Saharan Africa (in US $ million) Debt generating resources Non Debt generating resources

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo Source: Global Development Finance 2003 Benchmarking Workers remittances in selected regions (in US $ million) East Asia and Pacific Sub-Saharan Africa Latin America and Caribbean Middle East and North Africa

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo Source: Data from Global Development Finance Benchmarking NDGR/DGR in Sub-Saharan Africa, (in %) The Poverty Paradox: something wrong with the present African governance on producing value added and sharing wealth Share of Non debt generating resources in Debt generating resources Share of Workers Remittances in Non debt generating resources

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo Creating effectiveness of the remittances in Africa

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 15 Management of projects and funds Gradual ChangesMajor Changes Proactive Decision making 1. Adjustment through direct influence on the context 2. Planning and implementing changes while making use of present conditions Reactive Decision making 3. Non-linear introduction of changes due to pressures from the environment 4. Conversion due to external pressures Source: G. Johnson and K. Sholès, Stratégique, Publi-union, Paris, 2000, see Chapter 11. Dynamic strategic changes required

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 16 Despite hostile business environment in Africa:  Strengthening States and improving its performance as a regulatory and enabling body  Building on private sector development including public- private partnerships  Investing Workers Remittances into: 1.Securing land ownership especially for women 2.“Proximity” credit facility institutions 3.Promoting cross-border free trade 4.Linkages with regional and global production networks 5.Identifying “appropriate technology and know-how and structuring its diffusion locally 6.Building on performance, quality and timely delivery 7.Self employment activities 8.Promotion of value added products and services based on systemic up-grading and innovation approaches (at all stages)

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 17 The way forward: Focusing on technology upgrading 1.Moving from Transfer of People to Transfer and diffusion of knowledge, skills and technology (using video conference facilities and wireless technologies) 2.Transforming selected Universities into Social Responsibility knowledge centres 3.Promoting national and sub-regional reverse Brain Drain through incentives for countries pursuing a predictable and conducive environment 4.Tax free regimes for equipment and technology imports within Diaspora’s new geographical borders (intra-pan-African countries) 5.Database for Diaspora’s competencies including Business and subcontracting matchmaking partnership with local private sector and knowledge centres 6.Creation of a post of Commissioner for African Diaspora’s at the level of the African Union and/or NEPAD and a Ministry for Diaspora at national and regional levels 7.Building Cross-border networks at the sectoral and financial levels

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 18 Conclusion: towards collective efficiency

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo 19 1.Do not work in isolation 2.Build interdependence among the Diaspora as well as with Africa and 3.Build on Collective efficiency in Africa

Leveraging the Africa Diaspora, London Business School, Africa Club, Friday 22 nd April 2005 Y.E. Amaïzo