African governments have been urged by the United Nations to offer incentives to their citizens in diaspora to boost the level of remittances into the continent.
Speaking at the Kenya Diaspora Homecoming Convention 2019 (KDHC) on Tuesday, Siddharth Chatterjeem, UN resident coordinator in Kenya said that Africans living outside the continent are key to the economic and social transformation of the continent.
“There is need for incentives in form of tax breaks, long term bonds, guarantees and risk mitigation measures in order for the Africa Diaspora to see value proposition in investing their funds back in the continent,” Chatterjee said during the sixth Kenya Diaspora Homecoming Convention.
The three-day annual convention that ends on Thursday has brought together the Kenyan Diaspora community to review ways to enhance their role in the Big Four Agenda.
“Remittances are now emerging as a major source of foreign exchange in many African nations and in some cases has surpassed revenue sources of traditional export commodities such as coffee, tea and cut flowers.” Chatterjee noted.
The UN Official added that the Diaspora has the intellectual knowledge and great experience gained from outside the continent that can be utilized to catalyze economic growth in the continent.
He believes that greater reforms in improving the business climate will entice more private investments into Africa by the Diaspora.
Siddharth’s final remarks were that the continent is currently home to some of the fastest-growing economies in the world and represents an investment opportunity for the Diaspora community.