Starting a business topped the highest remittances whilst education was the second-highest use of remittances from outside Africa.
Report on African countries remittances, skills and Investments are jointly carried out by the African Development Bank (ADB) and the World Bank as part of the Africa Migration Project.
A breakdown of the $40 billion investment showed that Nigerians in the Diaspora invested 57 percent; 55 percent in Kenya; 36 percent in Burkina Faso; 20 percent in Uganda and Senegal, 15 percent.
Hans Timmer, Director of development prospects at the World Bank, said there is possibility for the figure to increase arising from increasing population on the continent.
He said, “Migration pressures will only rise in the future as a result of demographic changes of rising population in Africa and falling labor forces in Europe and many developed countries.
“Therefore, adapting policy responses to demographic forces and crafting multilateral arrangements for managing future migration is essential.”
Timmer stated, “Two-thirds of migrants from Sub-Saharan Africa, particularly poorer migrants, go to other countries in the region, while more than 90 percent of migrants from North Africa have moved outside the African continent.
The top destinations for African migrants are France (9 percent of total migrants), Cote d’Ivoire (8 percent), South Africa (6 percent), Saudi Arabia (5 percent) and the United States and the United Kingdom (4 percent each).
Shantayanan Devarajan, Chief Economist of the Africa region at the World Bank said, “Migration of skilled labor is particularly high in small and low-income African countries, which already have low levels of human capital.
Fragile and post-war countries face even bigger challenges because of the flight of human capital.
African governments and policy makers should focus on increasing education and skill levels and establishing an environment in which highly skilled workers will have productive opportunities at home.”
Dilip Ratha, main author of the report and lead economist at the World Bank, in his submission, said African governments need to strengthen ties between Diasporas and home countries in order to protect migrants, and expand competition in remittance markets else the potential of migration for Africa remains largely untapped.
According to Ratha, “One innovation worth considering is diaspora bonds, which are sold by governments or private companies to nationals living abroad.
These bonds have already been successful in tapping into assets of Israeli and Indian citizens living abroad.”
“Sub-Saharan African countries can potentially raise $5–$10 billion a year in diaspora bonds. Countries with large diasporas in high-income countries that can potentially issue diaspora bonds include Ethiopia, Ghana, Kenya, Liberia, Nigeria, Senegal, Uganda and Zambia in Sub-Saharan Africa, and Egypt, Morocco, and Tunisia in North Africa”.
The project has the financial support of the African Development Bank, Canadian International Development Agency (CIDA), Department of International Development (DFID), French Ministry of Immigration, Integration, Asylum and Solidarity Development; Danish Ministry of Foreign Affairs, International Fund for Agricultural Development (IFAD) and the Swedish International Development Cooperation Agency (SIDA).
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Ghanaians, Others Abroad Send Home $40bn