The Year of More Returns?

Since the?World Bank?started taking note of the remittances to African countries, it has been projected that the remittances to the African continent are set to surpass $100 billion for the first time.

During this week eyes have been eagerly on the current US-Africa Summit.

Reading the comments of the US Secretary of Treasury Wally Adeyemo, it of course emphasised the importance of bridge building and engaging the vast diaspora who as family people and financiers drive significant investment back to their roots.

Vice President of the US Kamala Harris in here speech also doubled down on the present and future that Africa represents to the current administration. Partnerships grounded in candour she states.

Neither pandemics nor illegal Russian wars have slowed down the consistency of funds flowing home to provide security to those most impacted by the global shockwaves.

Including the Maghreb the volumes annually are moving closer to $100 billion. Obviously we know that informal transfers may already have pushed that number higher.

When we look at markets like Kenya (close to my heart as my father was born there) the impact of migrants to the Kenyan economy is huge.?

The Central Bank of Kenya states that remittances remains the country's main source of FX rivaling export earnings from key economic sectors such as tourism, tea and horticulture.

Patriotism for migrants seeking a better life is never lost.?

Little wonder the head of the Africa Development Bank, Dr Akin Adesina stated that the diaspora are the biggest financiers to Africa, well ahead of overseas development aid.

Wamkele Mene the Secretary General for AfCFTA supported this view with a backdrop of declining foreign direct investment.

He also stated that a fully functional Pan-African payment system ( PAPSS) would make it easier for Africans to invest and of course trade.

Governments globally are clearly taking an active interest in wooing the diaspora.

A note of caution though with all the enthusiasm and PR.?

When we consider the financial situations in markets like Ghana ( consider that the Ghana Cedi went from one of the best performing currencies to now the worst in the world) and while on recent days against the dollar some improvements as the country begins to organise it's debt following the IMF agreement to bail out the country with a $3bn package, the long term prospects will rely on better economic measures.

Entrepreneurs both in Ghana and abroad are a lifeblood and barometers of well being.?

Ghana particularly in recent years has been on trail blaze led by the 'Year of the Return', a government drive to connect the diaspora and the world to Africa, it's heritage, it's culture, it's future from 2019.

In fact Lonely Planet cited that 2023 will be one of the top places to connect. ( Great work indeed by one of my partners and the CEO of Ghana Tourism, Mr Akwasi Agyeman ?).

What we need know, in my opinion is a table that brings together all stakeholders who share the same mission.

What I have personally experienced and seen is that diaspora or UK to Africa summits will tend to focus on top level and therefore the outcomes become generalized and for big companies only.

SMBs, startups, founders and competition across all sectors need to be fully engaged by investors, regulators, and governments.

The diaspora have their own agendas. It's not an infinite pool albeit remittances suggest otherwise.

I like to think that beyond the migrant community there are many international entrepreneurs, investors and others that see one of the fastest growing and youngest continents as the place where they believe perceived risks can be countenanced with great returns.?

15 years of my own direct experience across the continent has taught me that the building process doesn't stop.?

Technology offers a fast-track but the roots are the roots.?

Keep building..

Invest in Africa. ????

2023 - We see you...

Merry Christmas;

You'll find me on ?? @rajeshcloud