http://www.southerntimesafrica.com/news_article.php?id=7041&title=Africa%20to%20harness%20Diaspora%20funds%20%20&type=67
By Tawanda Musarurwa Published:
20120423
*Africa to harness Diaspora funds *
Harare - Africa will establish a remittances body following a resolution
made at the fifth joint meeting of the AU Conference of Ministers of
Economy and Finance, and the Economic Commission for Africa Conference of
African Ministers of Finance Planning and Economic Development in Ethiopia
last month.
The Africa Institute of Remittances (AIR) will be created in recognition of
the fact that these inflows have a huge impact on economic activity and
financial security.
The resolution reads: “The meeting recognised that remittances, when
properly harnessed, will have significant effect in accelerating the
socio-economic development of the continent.
“However, it was noted that there still exists a gap as to how remittances
can be properly harnessed and leveraged for socio-economic development.
“In order to address this gap and leverage these remittances, it was
recommended that an Africa Institute for Remittances be established to help
African countries realise this vision.”
According to the African Development Bank, Africa gets at least US$40
billion a year in Diaspora remittances, a figure that outstrips aid flows.
Unlike development aid, remittances are typically spent directly by the
families of migrants, making it an efficient way to raise the overall
household income and well-being.
African countries have begun to take greater steps to ensure they get the
most out of remittances.
For instance, the National Bank of Rwanda has requested the Macroeconomic
and Financial Management Institute of Eastern and Southern Africa to
provide technical assistance for capacity-building in designing a practical
compilation methodology for its remittances statistics.
Zimbabwe, whose annual remittances are estimated to constitute around 40
percent of GDP, has set up a Migration and Development Unit to tap into
inflows from Diasporans.
One of the country’s largest banks last year issued its three-year Economic
Recovery Bond on the Cayman Stock Exchange to generate Diaspora interest in
infrastructure investment.
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Received on Mon Apr 23 2012 - 10:11:41 EDT
