Hurdles Diaspora Face in Investing at Home
It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki
Investing wisely as you age is key. Protecting your investment portfolio is important, and one needs to be very sensitive on how to diversify investments to be able to protect your investments.
Kenyans in the diaspora have shown a great interest in investing back home from the amounts they remit.
According to The Central Bank of Kenya survey, Kenyans in diaspora managed to remit USD 224.5 million in July last year. The US has remained to top in Kenya’s remittance records followed by Europe and the rest of the globe follows.
For centuries, African Diasporas have continued to make a significant contribution to the continent’s socio-economic development through the transfer of skills, socio-cultural influence and, not least, remittances, which have far outweighed all sources of external financing.
Diaspora remittances have become Kenya’s single-largest foreign exchange earner, having long-surpassed tourism, tea and coffee. Hence the need to approach diaspora issues with more seriousness.
The idea of putting diaspora capital to more productive use has been further amplified by the necessity to explore new sources of financing for investment to supplement traditional domestic and external resources.
However, Diaspora members report several obstacles that stand in the way of saving and investing in Kenya. Corruption ranking highest amongst governance issues, although many also view political instability as a key barrier.
A lack of stability in the financial system, together with currency fluctuations and taxation policy, are perceived to be central issues for the financial system.
For many, the practical difficulties of saving and investing from afar also present a considerable barrier, in particular lack of knowledge about investment opportunities or the organizations that might reliably manage investments.
Disappointment has been a familiar term to Kenyans living in the diaspora after trying to invest back home (Kenya). Thousands if not millions have been frustrated by relatives, friends and cunning property agents who pledged to assist them in investing back at home only to be ripped off their hard-earned money.
To help the people living aboard be able to invest at home with ease, there is the need for addressing the challenges that they have been facing.
It should be stressed however that developing a diaspora investment program is a thorough process that requires long-term commitment, involves considerable time in planning and product design, and significant resources in execution to reach and mobilize the diaspora.
A government’s engagement with their diaspora is a key tool for being able to mobilize resources. One clear key component of the diaspora investment strategy is in understanding the diaspora.
Could you be willing to be interviewed by our team around a business opportunity you are conducting that can be beneficial to both Kenyans at home & those in the diaspora if they invested in your business or partnered with you? Please talk to us through our email: firstname.lastname@example.org or whatsapp +254 742 343908.